I am using latest stable client,server and I can backup,restore and drop 
database.
I can change administration password too and can backup,restore database with 
that new password too.

check your postgres user rights.
That user have all rights otherwise you can't do any operation.
or try to connect with postgres user and check all functionalities.

------------------------
OpenERP=Easier, Adaptable, Affordable, Modular




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http://www.openobject.com/forum/viewtopic.php?p=39038#39038

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