Okay, let's go for the basics. We're going to ensure that your system
handles the minimal requirements, before moving on to the question of what's
going on that's causing your specific issues. To that end, run the following
commands:

cd $HOME
deactivate

virtualenv --no-site-packages tg21b2
source tg21b2/bin/activate
easy_install -i
http://www.turbogears.org/2.1/downloads/current/index/tg.devtools
paster quickstart tg21tut
cd tg21tut
python setup.py develop -i
http://www.turbogears.org/2.1/downloads/current/index/
paster setup-app
development.ini

paster serve development.ini

Once this is done, you should be able to visit http://localhost:8080/ in
your browser, and surf the default quickstart site. If this does not work,
then something else is going wrong on your system, and we will need to know
which operating system, OS version, and python  you are using to diagnose
further.

Note: I just ran the above commands via copy/paste to my command line, and
they worked perfectly. I am using Ubuntu 10.04, Python 2.6.5.


Once we've established the baseline, we can try to diagnose what's happening
with your postgresql connection, though that's likely to be a question
better aimed at the SQLAlchemy group.

-- 
Michael J. Pedersen
My IM IDs: Jabber/[email protected], ICQ/103345809, AIM/pedermj022171
          Yahoo/pedermj2002, MSN/[email protected]

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