using EXISTS instead of IN: how?

I have been informed that at present (postgres 7.3.2) using IN is not
advised, and I should replace it with EXISTS. I can't seem to get it to
work.

I've tried replacing (example):

SELECT
name
FROM
people
WHERE
state IN (
SELECT
id
FROM
states
WHERE
name ~* 'r'
);

with

SELECT
name
FROM
people
WHERE
exists (
SELECT
1
FROM
states
WHERE
name ~* 'r'
);

However the second example simply finds all records in people.

Thanks for any help,
Rory

--
Rory Campbell-Lange
<rory(at)campbell-lange(dot)net>
<www.campbell-lange.net>