PostgreSQL 8.0.6 crash

PostgreSQL promptly uses all available memory for the query and
subsequently crashes.

I'm sure it can be corrected with a setting, but should it crash?

freedb=# create table ucode as select distinct ucode from cdtitles group
by ucode having count(ucode)>1 ;
server closed the connection unexpectedly
This probably means the server terminated abnormally
before or while processing the request.
The connection to the server was lost. Attempting reset: Failed.

(Table layout)
freedb=# \d cdtitles
Table "public.cdtitles"
Column | Type | Modifiers
-----------+-------------------+-----------------------------------
cdid | integer | default nextval('seq_cdid'::text)
cdcode | character varying |
ucode | character varying |
title | character varying |
artist | character varying |
genre | character varying |
dgenre | character varying |
year | integer |
processed | character varying |
submit | character varying |
revision | integer |
disclen | integer |
tracks | integer |
extkey | integer |
offsets | integer[] |
Indexes:
"cdtitles_ucode" btree (ucode) CLUSTER

(Size of table)
freedb=# select count(*) from cdtitles ;
count
---------
1927912
(1 row)

(Sample row)
freedb=# select * from cdtitles where cdid = 100001 limit 1;
cdid | cdcode | ucode | title |
artist | genre | dgenre | year | processed
| submit | revision | disclen | tracks | extkey |
offsets
--------+----------+-----------------------+--------------------------+------------+-------+--------+------+-------------------------------------------------+-----------------+----------+---------+--------+--------+-----------------------------------------------------------------------------------------------------------------------------------------------
100001 | 320e9e14 | 0ea0-14-3399-0006ad6a | Var Slutar V�arna
(CD1) | Streaplers | rock | | 0 | cddbd v1.5PL3 Copyright (c)
Steve Scherf et al. | dBpowerAMP V4.0 | 0 | | 19 |
|
{21,150,13920,31180,43664,59907,73163,86629,98447,113684,130205,141682,154920,166783,179028,192689,205161,222164,234649,249692,264340,3744,0}
(1 row