"FATAL: database "foo" does not exist"

[Craig Metz <..hidden..>]

  I installed LedgerSMB 1.1.1c on a Linux system will all the listed
prerequisites. I followed the instructions in doc/README for a local
(non-FTP) install. When I get to the "Set up a database and tables" 
step, I click on "Pg Database Administration", then click on "Create
Dataset." At this point, if I enter a name for the new dataset (say,
"foo") in the Create Dataset field, and click on "Continue", I get
the following error page:

Error!

FATAL: database "foo" does not exist

  The same set of steps with SQL Ledger on the same system result in
correct database creation. Can someone please offer me suggestions on
how to fix or at least debug this problem? 

  Thanks,

								-Craig