Postgres: FATAL

[Geordie <..hidden..>]

Hi
My evening adventures and I have got step 1 completed
According to the direction outline below
    1 Installing LedgerSMB 1.2

   33 2) Create a postgresql admin database role, by convention named
   34 'ledgersmb':
   35 
   36 $ createuser --no-superuser --createdb --no-createrole \
   37 -U postgres --pwprompt --encrypted ledgersmb
   38 
   39 (\ is a bash line continuation character, this is a single command)
   40 
   41 The prompted password (referred to as MYROLEPASSWORD) will later be
   42 used in the DBConnect: string in the configuration file
   43 'ledgersmb.conf'
   44 
   45 If you prefer to work in postgresql's psql console, the equivalent SQL
   46 statement to create the ledgersmb role is:
   47 
   48 => CREATE ROLE ledgersmb LOGIN PASSWORD 'MYROLEPASSWORD' NOINHERIT
   49 CREATEDB;
   50 
   51 Further commands and database interaction should be conducted using
   52 the new LedgerSMB admin role 'ledgersmb'.
   53 
   54 
   55 3) Create a central user database, owned by the LedgerSMB admin role,
   56 'ledgersmb':
   57 
   58 $ createdb -U ledgersmb -O ledgersmb ledgersmb
   59 


..hidden..:~$ createuser --no-superuser --createdb --no-createrole -U postgres --pwprompt --encrypted ledgersmb
Enter password for new role:
Enter it again:
..hidden..:~$ createdb -U ledgersmb -O ledgersmb ledgersmb
createdb: could not connect to database postgres: FATAL:  Ident authentication failed for user "ledgersmb"

Specs
Postgresql Installed  8.3.3-1
Ledgersmb 1.2.15 Deb

The readme doc is not located here on this laptop. I could not find it

It's in the standard place for Debian documentation
/usr/share/doc/ledgersmb/README.Debian

Also
This is from /ledgersmb_1.2.15-2.diff.gz that came from the download
  2) Create postgres database for ledgersmb
+
+	$ createdb -U ledgersmb -O ledgersmb -E UNICODE ledgersmb
(this is different from above. Which one is correct?)
+
+  Depending on the configuration of your daabase, you may need to edit 
+  /etc/postgresql/8.x/main/pg_hba.conf for the appropriate permissions.
+
+        $ createlang plpgsql -U postgres ledgersmb
(this is also different, does this need to be done?)

 /etc/postgresql/8.x/main/pg_hba.conf
What should the configuation look like? I seem to have a thick moment when I play here.
Many thanks
Geordie