ident auth not working on 7.3.1

I can't get ident auth to work on 7.3.1. I'm using Linux 2.4 (RedHat 7.3).

[postgres(at)calvin data]$ unset PGDATABASE PGHOST PGPORT PGUSER
[postgres(at)calvin data]$ killall -HUP postmaster
[postgres(at)calvin data]$ egrep '^[^#]' pg_hba.conf
local all all trust
[postgres(at)calvin data]$ psql template1
Welcome to psql 7.3.1, the PostgreSQL interactive terminal.

Type: \copyright for distribution terms
\h for help with SQL commands
\? for help on internal slash commands
\g or terminate with semicolon to execute query
\q to quit

template1=# \q
[postgres(at)calvin data]$ vim pg_hba.conf
[postgres(at)calvin data]$ killall -HUP postmaster
[postgres(at)calvin data]$ egrep '^[^#]' pg_hba.conf
local all all ident
[postgres(at)calvin slamb]$ id
uid=26(postgres) gid=26(postgres) groups=26(postgres)
[postgres(at)calvin slamb]$ psql template1
psql: FATAL: IDENT authentication failed for user "postgres"

What could cause this?

Thanks,
Scott