initdb reporting error.

Hi,

I have installed postgres in a non-standard location with this call to
configure:
./configure --prefix=/scratch/postgresql-7.4/
--exec-prefix=/scratch/postgresql-7.4 --libdir=/scratch/postgresql-7.4/lib
make
make install

I then put /scratch/postgresql/bin/ in my PATH and /scratch/postgresql/lib
in my LD_LIBRARY_PATH. I then source my bashrc.

I then run initdb with the following call:
/scratch/postgresql/bin/initdb -D /home/grads/carrolls/database

I am then presented with the following error:
creating conversions... ERROR: could not load library
"/usr/local/pgsql/lib/utf8_and_iso8859_1.so":
/usr/local/pgsql/lib/utf8_and_iso8859_1.so: undefined symbol: elog

initdb: failed

There is an old postgres installation in /usr/local but i do not
understand why initdb would look there. I do not have root permisions so
that is why I have installed at this non-standard location. My Path and
LD_CLASS_PATH do not contain /usr/local/pgsql/....

Does anyone have an idea as to what I may be going wrong? I have looked
everywhere and cant figure out where libdir is being set incorrectly.

Seamus