Stored Procedure Newbie

I'm sure I'm doing something stupid, but this is driving me nuts...

This is the first stored procedure I've ever written in my life.

I have a database calle

jags_content

jags_content has a table in jags_content called

update_flag

update_flag has a column of type timestamp called

content

So far, so good....

I have a file with the following contents:

DROP FUNCTION update_flag_func();
CREATE FUNCTION update_flag_func()
RETURNS text
AS 'UPDATE update_flag SET content=current_timestamp;'
LANGUAGE 'plpgsql';

SELECT update_flag_func();

When I run the 'UPDATE update_flag SET content=current_timestamp' in
the SQL window (pgaccess), it works.

When I type
psql -f udt jags_content

I get an error...

DROP
CREATE
psql:udt:7: NOTICE: plpgsql: ERROR during compile of update_flag_func
near line 1
psql:udt:7: ERROR: parse error at or near "UPDATE"

What obvious thing am I missing?

I just upgraded to postgres (7.1.??), I'm running Linux, and
everything else seems to be working (I can run JDBC queries, no
problem...)

Help!

Cheers,
Eric