postgres error on install

Hello,

I ran into the error below while installing postgres:
.
.
.
ERROR: parser: parse error at or near "SEQUENCE" at character 7
CREATE FUNCTION
CREATE FUNCTION
CREATE FUNCTION
CREATE FUNCTION
ERROR: Type "anyelement" does not exist

These were the steps I took:
# create pg user
#---------------------------
su - postgres
createuser -a -d drupal

# create db
#---------------------------
createdb -U drupal -W drupal

# create plpgsql
#---------------------------
createlang plpgsql drupal

# init drupal db
#---------------------------
psql -U drupal -W drupal < database/database.pgsql

I was (more or less) following these install docs:

http://drupal.org/book/export/html/43767

and was at "PostgreSQL specific guidelines"

Is this a show stopper or should I forge ahead...?

Thanks!!

-al