The following bug has been logged online:

Bug reference:      2051
Logged by:          David Fetter
Email address:      [EMAIL PROTECTED]
PostgreSQL version: 8.0x
Operating system:   Linux
Description:        CREATE TEMP TABLE AS SELECT doesn't play nice with ON
COMMIT DROP
Details: 

CREATE TEMP TABLE foo
AS SELECT a,b,c
FROM bar
ON COMMIT DROP;

causes a syntax error.  So does 

CREATE TEMP TABLE foo
ON COMMIT DROP
AS SELECT a,b,c
FROM bar
;

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