BUG #3269: PSQL does not display error output

The following bug has been logged online:

Bug reference: 3269
Logged by: Bojan Jovanovic
Email address: pgbojan(at)bjovanovic(dot)com
PostgreSQL version: 8.2.4
Operating system: RHEL3
Description: PSQL does not display error output
Details:

Hello,

We just upgraded to 8.2.4, and noticed that psql does not display error
messages, e.g.:
shp_production=# \set autocommit 'off'
shp_production=# \set
AUTOCOMMIT = 'off'
PROMPT1 = '%/%R%# '
PROMPT2 = '%/%R%# '
PROMPT3 = '>> '
VERBOSITY = 'default'
VERSION = 'PostgreSQL 8.2.4 on i686-pc-linux-gnu, compiled by GCC gcc (GCC)
3.2.3 20030502 (Red Hat Linux 3.2.3-42)'
DBNAME = '*****'
USER = '*****'
PORT = '5432'
ENCODING = 'LATIN1'
autocommit = 'off'
shp_production=# select * from asdfafsdf;
shp_production=# commit;
ROLLBACK
shp_production=#

As you can see, the error message was not shown.. If we do the exact same
thing from a remote 8.1.8, everything works just as expected:
shp_bjovanovic=# select * from asdfafsdf;
ERROR: relation "asdfafsdf" does not exist
shp_bjovanovic=#

Please let me know where the issue is! Thanks!

Regards,
bojan