Postgres Authentication Problems

Well I posted this a little while ago and I thought I would give it another
try....

I just installed postgres7 on my new axi and I am reading through the online
administrator's guide about authentication methods. I read this part of the
guide which seems to be exactly what I am looking to do:

To restrict the set of users that are allowed to connect to certain
databases, list the set of users in a separate file (one user name per line)
in the same directory that pg_hba.conf is in, and mention the (base) name of
the file after the password or crypt keyword, respectively, in pg_hba.conf.
If you do not use this feature, then any user that is known to the database
system can connect to any database (as long as he passes password
authentication, of course).

I believe I have followed these instructions by having this as my
pg_hba.conf file:

local netstat crypt
netstat
host netstat 207.112.136.9 255.255.255.255 crypt
netstat
host netstat 207.112.136.12 255.255.255.255 crypt netstat
host netstat 207.112.136.2 255.255.255.255 crypt netstat
host netstat 207.112.136.100 255.255.255.255 crypt netstat

The file mention at the end of each line is in the same directory as
pg_hba.conf. This file contains three user names which are all valid
postgres user names, and they are all on their own line. The users are
pgsql,craig, and netstat. However, I can still connect to the netstat db as
user sgshop. I have no permission to do anything in the existing tables but
I can connect. Am I correct in believing that the user sgshop should not be
able to connect to the netstat db under these circumstances? Has anyone here
had success doing something like this in postgres?

Craig Anderson
Director of Internet Services
Netstat Resources, LLC.