You know, I just had that problem with another, totally unrelated RPM on my RH 6.2 distribution. I'd installed it, then decided to uninstall it. This is now deprecated and it says "use -e". "-e" said the package wasn't installed. "-i" said the package was already installed.
Seems like a contradiction to me!
So the problem might not be with the RPM on the Postgres site...
Lamar Owen, who builds these RPMs for RH and the PG site, hangs around here at OpenACS. With a little luck he'll pop up and give you an answer.