Error with pg_restore (parse error at or near "BY" at character 144

What does this error mean:

pg_restore: creating TABLE author
pg_restore: creating SEQUENCE author_id
pg_restore: [archiver (db)] could not execute query: ERROR: parser: parse error at or near "BY" at character 144
pg_restore: *** aborted because of error

The line in question is:

GRANT ALL ON TABLE author TO GROUP dvnl;
[...]
);

^A^A
INCREMENT BY 1
NO MAXVALUE
NO MINVALUE
CACHE 1;

^A^A

The command used to restore the db:

pg_restore --dbname=dvnl --format=t --verbose --username=dvnl --no-privileges --no-owner dvnldump.tar

The source db is PostgreSQL 7.4 and the target db is 7.3.3
--
Regards, Charels.