That psql option should be --no-readline (as it used to be), not --noreadline.

src/bin/psql/startup.c

@@ -3,7 +3,7 @@
  *
  * Copyright 2000 by PostgreSQL Global Development Group
  *
- * $Header: /cvsroot/pgsql/src/bin/psql/startup.c,v 1.32 2000/05/12 16:28:31 momjian Exp $
+ * $Header: /cvsroot/pgsql/src/bin/psql/startup.c,v 1.33 2000/05/14 18:05:05 petere Exp $
  */
 #include "postgres.h"
 
@@ -314,7 +314,7 @@ parse_psql_options(int argc, char *argv[], struct adhoc_opts * options)
 		{"host", required_argument, NULL, 'h'},
 		{"html", no_argument, NULL, 'H'},
 		{"list", no_argument, NULL, 'l'},
-		{"noreadline", no_argument, NULL, 'n'},
+		{"no-readline", no_argument, NULL, 'n'},
 		{"output", required_argument, NULL, 'o'},
 		{"port", required_argument, NULL, 'p'},
 		{"pset", required_argument, NULL, 'P'},