Humongous BUG in PostgreSQL/libpq?

If I declare a cursor in embedded SQL I get a strange error wich
doesn't occur if I declare it manually with psql!

the code is:

void setSQL(PGconn *conn){
PQexec(conn,"SET DATESTYLE=European;");
PQexec(conn,"BEGIN TRANSACTION;");
PQexec(conn,"SET TRANSACTION ISOLATION LEVEL SERIALIZABLE;");
PQexec(conn,"DECLARE peop_cursor CURSOR FOR SELECT * FROM people;");

/*at this point while executing this last instruction pgsql give me:

"NOTICE: current transaction is aborted, queries are ignored until
the end of transaction"

but the error doesn't occur processing those instructions in psql
*/
}

what I have to do????????????
HELP!
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