syncdb fails with the auth application

[Kelly Miller]

I run python manage.py syncdb -v on a new database and it fails. I'm running python 2.5, PostgreSql 8.3 and use Pycopg2 Version 2.0.7

The error I see follows:

Running post-sync handlers for application auth
Traceback (most recent call last):
  File "manage.py", line 11, in <module>
    execute_manager(settings)
  File "/Library/Python/2.5/site-packages/django/core/management/__init__.py", line 334, in execute_manager
    utility.execute()
  File "/Library/Python/2.5/site-packages/django/core/management/__init__.py", line 295, in execute
    self.fetch_command(subcommand).run_from_argv(self.argv)
  File "/Library/Python/2.5/site-packages/django/core/management/base.py", line 77, in run_from_argv
    self.execute(*args, **options.__dict__)
  File "/Library/Python/2.5/site-packages/django/core/management/base.py", line 96, in execute
    output = self.handle(*args, **options)
  File "/Library/Python/2.5/site-packages/django/core/management/base.py", line 178, in handle
    return self.handle_noargs(**options)
  File "/Library/Python/2.5/site-packages/django/core/management/commands/syncdb.py", line 101, in handle_noargs
    emit_post_sync_signal(created_models, verbosity, interactive)
  File "/Library/Python/2.5/site-packages/django/core/management/sql.py", line 205, in emit_post_sync_signal
    interactive=interactive)
  File "/Library/Python/2.5/site-packages/django/dispatch/dispatcher.py", line 132, in send
    response = receiver(signal=self, sender=sender, **named)
  File "/Library/Python/2.5/site-packages/django/contrib/auth/management/__init__.py", line 25, in create_permissions
    ctype = ContentType.objects.get_for_model(klass)
  File "/Library/Python/2.5/site-packages/django/contrib/contenttypes/models.py", line 28, in get_for_model
    defaults = {'name': smart_unicode(opts.verbose_name_raw)},
  File "/Library/Python/2.5/site-packages/django/db/models/manager.py", line 84, in get_or_create
    return self.get_query_set().get_or_create(**kwargs)
  File "/Library/Python/2.5/site-packages/django/db/models/query.py", line 329, in get_or_create
    sid = transaction.savepoint()
  File "/Library/Python/2.5/site-packages/django/db/transaction.py", line 188, in savepoint
    connection._savepoint(sid)
  File "/Library/Python/2.5/site-packages/django/db/backends/__init__.py", line 37, in _savepoint
    self.connection.cursor().execute(self.ops.savepoint_create_sql(sid))
psycopg2.InternalError: SAVEPOINT can only be used in transaction blocks