Permissions setup on new install

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I have completed a new install of LedgerSMB 1.2.7 (and dependencies) on a stable install of Ubuntu 7.04 using the procedure laid out on http://ubuntuforums.org/showthread.php?p=3232208
 with the variation of installing PG 8.2 rather than 8.1

I can open http://localhost/ledgersmb/admin.pl

I can create users (which subsequently are listed in the admin page) but get an error when saving , such as

Error!

FATAL: password authentication failed for user "trp"

When I go to http://localhost/ledgersmb/login.pl I cannot log in and get

Error!

bin/login.pl:336: Access Denied!

I have messed up permissions somehow? - some guidance to correct would be greatly appreciated.  


Chris