Welcome Eric, and thanks for the contribution. I believe that the slice you refer to should still work. If you are already familiar with setting up PostgreSQL, then you don't have to do anything special for web2py. The only thing you need is a Python driver for PostgreSQL, which is why the slice tells you to install python-psycopg2. Besides that, setting DAL to use 'postgres://username:password@localhost:5432/mydb' in your db.py file is all that's left. I haven't started using PostgreSQL with my web2py projects yet, but there are a lot of people here that do. I'm sure someone will be able to help you if you run into any trouble.
Hope you enjoy web2py, I certainly have since I started using it.
