I'm not out of ideas yet! Two more potential gotchas.
1. With PostgreSQL 7.0beta3 (or higher) I found that I had to link to libcrypt (so add -lcrypt to the Makefile).
2. With the PostgreSQL 7.0beta3 update, I found a few symlinks in /usr/lib were broken (namely libpq++.so and libpq.so). Update them to point to the right place (libpq.so.2.1 and libpq++.so.3.1, IIRC).
Are you seeing anything interesting in the Logfile besides the Ns_ModuleInit error? I must admit, I'm surprised my first suggestion didn't work. See, the new driver source for nspostgres.so does not contain the "Ns_ModuleInit" declaration. That's why it doesn't work if you put in under the regular "modules" section. Do you maybe have it listed in both places?
