Trouble converting database

[Jos Geluk <..hidden..>]

While upgrading a test database from 1.2.25 to 1.3.10, I am able to log 
in as a user. However, after the upgrade, the database does not contain 
any actual data.
When using psql I see that AR, AP, OE etc have 0 rows. The statement
SELECT * FROM defaults WHERE setting_key = 'version'
shows me that the version is indeed 1.3.10. There is one row in the 
users table (me). There are 144 rows in lsmb_roles.

I can rerun setup.pl and choose "rebuild" but that doesn't rebuild the 
database. When I drop the database and re-import it, the tables contain 
valid data, but after "setup.pl" the tables are empty again. The 
relevant part of the log file is this:

2012-04-09 18:42:46 CEST ERROR:  column "version" does not exist at 
character 8
2012-04-09 18:42:46 CEST STATEMENT:  SELECT version FROM defaults
2012-04-09 18:44:08 CEST ERROR:  language "plpgsql" already exists
2012-04-09 18:44:08 CEST STATEMENT:  CREATE LANGUAGE PLPGSQL;
2012-04-09 18:45:20 CEST ERROR:  syntax error at or near "LANGUAGE" at 
character 180
2012-04-09 18:45:20 CEST STATEMENT:  COMMENT ON FUNCTION 
payment_get_all_accounts(int) IS
	$$ This function takes a single argument (1 for vendor, 2 for customer as
		LOOP
			RETURN NEXT out_entity;
		END LOOP;
	END;
	$$ LANGUAGE PLPGSQL;
2012-04-09 18:45:20 CEST ERROR:  current transaction is aborted, 
commands ignored until end of transaction block

All subsequent commands are ignored.
Where to start?

Thanks,

Jos.

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