Need help with pg_hba.conf, CREATE USER and password authentication

Hello all,

I'm using PostGre 6.3 on a Linux box and connecting to it via ODBC from Win98.

My pg_shadow table has the following record (example):

usename
|usesysid|usecreatedb|usetrace|usesuper|usecatupd|passwd|valuntil

--------+--------+-----------+--------+--------+---------+------+-----------
-----------------
bob | 506|f |t |f |t |smith |

There is only one table in this database, named "testtable". I created the user
bob while logged in as a super-user in the database "testdb":

CREATE USER bob WITH PASSWORD smith;
GRANT ALL TO bob ON testtable;

My pg_hba.conf has three lines (only one in effect at a time, the other two are
commented out):

#host all 123.12.34.123 255.255.255.0 trust
#host all 123.12.34.123 255.255.255.0 crypt
host all 123.12.34.123 255.255.255.0 password

My problem is this. If I use the "trust" line:

host all 123.12.34.123 255.255.255.0 trust

I can log in just fine with my ODBC driver to that database and read the table
just fine, as bob smith. However, if I change it to

host all 123.12.34.123 255.255.255.0 password

I get "database doesn't exist or authorization failed" message. I know the
table exists because I can use it in "trust" mode, and I know the username and
password I'm using is correct. From what I gather in the documentation the
"password" method with no parameters authenticates in the clear from the
pg_shadow table, which to me, is populated correctly.

What am I setting up incorrectly?

Another question, if I crypt() the passwords in pg_shadow, can I then use

host all 123.12.34.123 255.255.255.0 crypt

and still have it pull the encrypted passwords from pg_shadow?

Thank you for your guidance,

--James
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