Hi Vinod,
Visually inspected directories below and saw no nspostgres.so or postgres.so.
Nothing in:
. /usr/local/aolserver/bin
. /usr/lib
. /lib
. /usr/local/aolserver/lib
. /usr/local/pgsql/lib
Found missing step in instructions -- no make or make install for /usr/local/src/aolserver/nspostgres. I assumed the ./conf would handle that. But it didn't. Mat's notes don't mention it either, but the makefile in the driver directory has helpful comments.
The missing step created the nspostgres.so driver. I changed freegeek.tcl as you suggested.
That worked! Now on to installing OpenACS.