Login Failures After Upgrade

Folks,

Just upgraded from 7.1.3 to 7.3 (using RPMs) and now none of the assigned
users can login as before. Tried resetting passwords with 'ALTER USER XXX
WITH PASSWORD='pwd' and it didn't help. pg_hba.conf listing follows:

# TYPE DATABASE USER IP-ADDRESS IP-MASK METHOD

local all all
password
host all all 127.0.0.1 255.255.255.255 password
host all all 192.168.1.0 255.255.255.0 password
host all all 24.128.216.179 255.255.255.255 password
host all all 217.33.127.174 255.255.255.248 password

Had to set the first two lines to 'trust' to get apache/php to access data.
Would like to have password protection working again, but can't figure out
what's gone wrong. Any ideas appreciated, thanks.

Rgds,

________________________
Greg Kelley, IT Director
Britannic Aviation, US and UK
US Office:
Pease Int'l Tradeport
68 New Hampshire Ave.
Portsmouth, NH 03801
603.766.3005
http://www.britannicaviation.com
AOPA, EAA, SSA
CFII SEL, MEL; Comm Glider