dumb rake test:functionals question

I have all my test/functionals/*_test.rb in order and they work fine run
by themselves...so I went for the whole enchilada.

$ rake test:functionals
(in /home/craig/svn-new/th-db/branches/phase5)
dropdb: could not connect to database postgres: FATAL: database
"postgres" does not exist
createdb: could not connect to database postgres: FATAL: database
"postgres" does not exist
NOTICE: CREATE TABLE will create implicit sequence "assessments_id_seq"
for "serial" column "assessments.id"
<<< some snippage >>>
NOTICE: CREATE TABLE / PRIMARY KEY will create implicit index
"case_managers_pkey" for table "case_managers"
rake aborted!
PGError: ERROR: relation "case_managers_id_seq" already exists
: CREATE TABLE case_managers ("id" serial primary key, "first_name"
character varying(25) DEFAULT NULL, "last_name" character varying(25)
NOT NULL, "clinic_name" character varying(30) DEFAULT NULL,
"middle_initial" character varying(1) DEFAULT NULL, "clinic_id" integer
DEFAULT NULL, "middle_name" character varying(20) DEFAULT NULL,
"lock_version" integer DEFAULT 0)

OK - so I'm wondering...

1. Why does it try to drop the db first?

2. Why does it try to use the user 'postgres' when that isn't the
   user specified in database.yml for either test, devel or prod?

3. How do I find out what the processes are for rake test:functionals?

4. Can these processes be modified?

5. I put ActiveRecord::Base.configurations[:fixtures_load_order] = [
   :clients,
   :case_managers,
   :and_on_and_on
   ] into config/environments/test.rb but I can't tell that it makes
   a difference...is this the wrong place?

I promise I have tried to google this info but haven't had much luck
beyond simple descriptions of the command itself.

Craig