I always update the driver, but I'm also on Postgres 8.3.
You can get the most recent driver at:
http://jdbc.postgresql.org/
I also setup the datasource using the following:
Pick database type as "Other"
CF Data Source Name: whatever you want to use
JDBC URL: jdbc:postgresql://127.0.0.1:5432/dbname
(where 127.0.0.1 is the IP address of your postgresql server,
5432 is the port number that the server is listening on, and dbname
is the name of the postgresql database you want to connect to)
Driver Class: org.postgresql.Driver
Driver Name: leave blank
User Name: name of PostgreSQL user that has access to desired
database
Password: password of above PostgreSQL user