I'm using v. 7.4.2, and am encountering a problem with serial types. On an insert into a table that results in failure for any number of reasone (mostly violation of contraints) I've found that the Sequence for the column of type serial will still bump the value up once.
This is FAQ item number 4.15.4:
http://www.postgresql.org/docs/faqs/FAQ.html#4.15.4
HTH,
Mike Mascari
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