CONNECT privilege

I've set up a little test to find out how much permissions users have in
PostGreSQL.
It seems that the CONNECT privilege cannot be assigned or is not
recognized by postgresql 8.1.

When using pgAdmin-III it does not display the granted CONNECT
priviledge.
Also when doing GRANT CONNECT FOR DATABASE <db> TO <user/group> it
succeeds, but I fail to observe its effects: i.e. users are not allowed
to a database.

The public rule has been removed of course from the database.

I did find GRANT CONNECT in the documentation, but no notes regarding
its operation.
Also I have read at least the pgAdmin documentation advices to use the
connect privilege rather than pg_hba configuration file, which seems
logical and easier to manage.

Any way I seem to be doing something wrong or missed something?

Thanks,

- Joris