Trigger issue, bug? on 7.2.1

Hi, we are having some trouble we a trigger.

Or version is:  PostgreSQL 7.2.1 on i686-pc-linux-gnu, compiled by GCC
2.96, running on RH72.

Suppose this SQL query:

UPDATE table set state=1 where id=30;

Theres a trigger on the table ON UPDATE BEFORE

The trigger code is something like this:

IF NEW.state = 1 THEN
    RAISE NOTICE ''Trigger: % -> some administrative information '',
TG_NAME; NEW.state=2;
END IF;

IF NEW.state = 2 THEN
    RAISE NOTICE ''Trigger: % -> some administrative information
'',TG_NAME; DELETE FROM table where id = OLD.id;
END IF;

The trigger code will force another trigger fire because of the changes
in the record. I'm i right?

The trouble is that the trigger isnt firing, the trigger only gets
executed only once.

If i do a select on the table the state field contains the value 2 not
1, so i'm shure the trigger as runned.

Is this a trigger issue or i'm i doing something wrong?

Please fell free to ask more information if needed.

Miguel Carvalho