Problem setting up new users

I'm having problems setting up postgres with new users. It is a new
install using 7.3..8 rpms. Use the following to create a new user.

create USER foo WITH PASSWORD 'secret';

When I try to login I get the following error:

[root(at)host postgressql]# psql template1 -U foo --password
Password:
psql: FATAL: IDENT authentication failed for user "foo"

If anyone can help me with this, I would be greatful.

Thank you,

Michael J. Robinson
Northeast Ohio Digital Inc.
http://www.neod.net
robinson(at)neod(dot)net
330.830.6551
888.232.6363

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