PostgreSQL 8.1 is currently the default version in CentOS 5.4 which do not support INSERT.. RETURNING

remove PostgreSQL 8.1

#yum remove postgresql postgresql-server


# vi /etc/yum.repos.d/CentOS-Base.repo
[base]
exclude=postgresql*
[updates]
exclude=postgresql*


#wget http://yum.pgsqlrpms.org/reporpms/8.3/pgdg-centos-8.3-7.noarch.rpm
#rpm -ivh pgdg-centos-8.3-6.noarch.rpm
#yum install postgresql postgresql-server