settings.py for localhost should specify localhost for postgresql (at least in my case)
|Reported by:||anonymous||Owned by:||jacob|
|Has patch:||no||Needs documentation:||no|
|Needs tests:||no||Patch needs improvement:||no|
Documentation within file says just to leave it blank if you use a localhost. I found that I had to put in the term localhost. This may depend on your postgresql installation. I'm running 8.1.0.
Let me know if you need some copies of my postgresql config files.