I'm running an oacs-5-0 site on pg 7.4.1 (debian unstable) without any problems but one: the /admin/groups/one admin page is broken, it fails with
ERROR: variable not found in subplan target lists
but I guess that is fixed on recent pg versions, judging from this changelog entry: http://www.postgresql.com/news/173.html
So if you go to pg 7.4 make sure you install the latest released version.