Try a couple of things:
"psql -V" - will give you the version. I'll bet you a quarter it says 7.1.3.
"which psql" - tells you which psql executable is in your path, which is therefore the one that gets executed. I'll bet another quarter it's not the one you just installed.
I'm guessing the box already had PG on it, probably from RPM, and you've added another copy. This is not necessarily bad, but it means you've got to set environment variables to make sure you're using the right one. I don't have a good example handy but I believe they're listed in the OpenACS installation guide. The most important thing is to make sure that the directory containing the right PG executables is ahead of the one containing the wrong ones in your PATH variable.
Another option is to try removing the rogue RPMs but you might get caught in another web of dependencies doing that. It's worth a try, though, since you don't seem to need the old version.
