Library Error

I just installed PostgreSQL on a Linux machine and it seems to run fine.
However, I cannot do anything to it since I get the following error message
everytime I run any program (except initdb, that worked):

psql: error in loading shared libraries: libpq.so.2.1: cannot open shared
object
 file: No such file or directory

The file does exist in the /usr/local/pgsql/lib directory, I do have
permissions for it, and I put lib in my path, yet it still complains.  Is
there a .conf file parameter missing somewhere?  A configure param? 

Any help would be appreciated.

John Sokel