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I am trying to install redmine . I am using cpanel. I know cpanel wont support rails 3 which latest cpanel uses. So i downgraded my rails version and also i am trying to install redmine 1.4.3 which is an old version. I followed many docs. But at last, when i execute

 bundle install --without development test

it shows,

The source :rubygems is deprecated because HTTP requests are insecure.                              
Please change your source to 'https://rubygems.org' if possible, or 'http://rubygems.org' if not.                                                                       
Fetching gem metadata from http://rubygems.org/.........                                                                                                                
Fetching gem metadata from http://rubygems.org/..                                                                                                                       
Resolving dependencies...                                                                                                                                               
Using rake (10.1.0)                                                                                                                                                     
Using activesupport (2.3.14)                                                                                                                                            
Using rack (1.1.6)                                                                                                                                                      
Using actionpack (2.3.14)                                                                                                                                               
Using actionmailer (2.3.14)                                                                                                                                             
Using activerecord (2.3.14)                                                                                                                                             
Using activeresource (2.3.14)                                                                                                                                           
Using coderay (1.0.9)                                                                                                                                                   
Using fastercsv (1.5.5)                                                                                                                                                 
Using i18n (0.4.2)                                                                                                                                                      
Using mysql (2.9.1)                                                                                                                                                     
Using net-ldap (0.3.1)                                                                                                                                                  
Installing pg (0.17.0)                                                                                                                                                  
Gem::Installer::ExtensionBuildError: ERROR: Failed to build gem native extension.                                                                                       

        /usr/bin/ruby extconf.rb                                                                                                                                        
checking for pg_config... yes                                                                                                                                           
Using config values from /usr/bin/pg_config                                                                                                                             
checking for libpq-fe.h... yes                                                                                                                                          
checking for libpq/libpq-fs.h... yes                                                                                                                                    
checking for pg_config_manual.h... yes                                                                                                                                  
checking for PQconnectdb() in -lpq... yes                                                                                                                               
checking for PQconnectionUsedPassword()... no                                                                                                                           
Your PostgreSQL is too old. Either install an older version of this gem or upgrade your database.                                                                       
*** extconf.rb failed ***                                                                                                                                               
Could not create Makefile due to some reason, probably lack of
necessary libraries and/or headers.  Check the mkmf.log file for more
details.  You may need configuration options.

Provided configuration options:
        --with-opt-dir
        --without-opt-dir
        --with-opt-include
        --without-opt-include=${opt-dir}/include
        --with-opt-lib
        --without-opt-lib=${opt-dir}/lib
        --with-make-prog
        --without-make-prog
        --srcdir=.
        --curdir
        --ruby=/usr/bin/ruby
        --with-pg
        --without-pg
        --with-pg-config
        --without-pg-config
        --with-pg_config
        --without-pg_config
        --with-pg-dir
        --without-pg-dir
        --with-pg-include
        --without-pg-include=${pg-dir}/include
        --with-pg-lib
        --without-pg-lib=${pg-dir}/lib
        --with-pqlib
        --without-pqlib


Gem files will remain installed in /home/domain/.gem/ruby/1.8/gems/pg-0.17.0 for inspection.
Results logged to /home/domain/.gem/ruby/1.8/gems/pg-0.17.0/ext/gem_make.out

An error occurred while installing pg (0.17.0), and Bundler cannot continue.
Make sure that `gem install pg -v '0.17.0'` succeeds before bundling.

So it started trying to install the gem pg. The output of gem install pg is

Building native extensions.  This could take a while...                                                                                                                 
ERROR:  Error installing pg:                                                                                                                                            
        ERROR: Failed to build gem native extension.                                                                                                                    

        /usr/bin/ruby extconf.rb
checking for pg_config... yes   
Using config values from /usr/bin/pg_config
checking for libpq-fe.h... yes             
checking for libpq/libpq-fs.h... yes       
checking for pg_config_manual.h... yes     
checking for PQconnectdb() in -lpq... yes  
checking for PQconnectionUsedPassword()... no
Your PostgreSQL is too old. Either install an older version of this gem or upgrade your database.
*** extconf.rb failed ***
Could not create Makefile due to some reason, probably lack of
necessary libraries and/or headers.  Check the mkmf.log file for more
details.  You may need configuration options.

Provided configuration options:
        --with-opt-dir
        --without-opt-dir
        --with-opt-include
        --without-opt-include=${opt-dir}/include
        --with-opt-lib
        --without-opt-lib=${opt-dir}/lib
        --with-make-prog
        --without-make-prog
        --srcdir=.
        --curdir
        --ruby=/usr/bin/ruby
        --with-pg
        --without-pg
        --with-pg-config
        --without-pg-config
        --with-pg_config
        --without-pg_config
        --with-pg-dir
        --without-pg-dir
        --with-pg-include
        --without-pg-include=${pg-dir}/include
        --with-pg-lib
        --without-pg-lib=${pg-dir}/lib
        --with-pqlib
        --without-pqlib


Gem files will remain installed in /home/domain/ruby/gems/gems/pg-0.17.0 for inspection.
Results logged to /home/domain/ruby/gems/gems/pg-0.17.0/ext/gem_make.out

Any solution?I badly want to run redmine in my server.

Ruby version : ruby 1.8.7 
Rails version : 2.3.18
Gem version : 1.8.25
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