bizarre problems on Fedora Core 4 with Postgres.
Turned out the answer was that:
1) You really do need to build all three of those
databases, rails_production, rails_development and
rails_test
2) You need to add the following line to pg_hba.conf
local all all trust
3) You need to set the following options:
development:
adapter: postgresql
database: rails_development
username: rails
password:
host: /tmp
These aren't really explicitly spelled out in the
wiki, I think I'm going to start a page to describe
how to do all this, especially the next step which
will be harder, which is getting PostGIS to work
with Ruby on Rails. I need to redesign my site anyways
to make it more compatible with the programming/consulting
work that I want to be doing in the future.