I have been rereading a SQL book and I found a possible solution. The author indicated that the best way to accomplish what I am working on is to create a single user. And that would be considered the application that I am working on, this user would be user that creates all db's for every user. At this point, when a user connects to the application, they are basically getting to their data by proxy ( read the user that is the application).
In answer to the previous response from Scott, since postgresql does not allow the user to be assigned to a specific database, the above approach would probably be the best method.
I cannot use pg_hba.conf to grant database permissions, as I will have know idea from which machine the user will be connecting, I am after all developing a web based application.
Thanks for your suggestions, and I am looking at the possibility of inheritance.
John