Failing to connect

I've installed Gnats 4.0 (Upgrade from 3.113) on a Solaris 2.7 machine.

I'm getting the following error on a telnet connect (and in gnatsweb):

-----
telnet enterprise 1529
Trying <ipnumber here>
Connected to enterprise.
Escape character is '^]'.
417 GNATS initialization of database failed: No such database as default
Connection closed by foreign host.
----

Gnats was configured with the following:
.//configure  --host=sparc-sun-solaris2.7 --with-gnats-server=enterprise --with-full-gnats --prefix
=/opt/gnats --with-gnats-default-db=/opt/gnats/share/gnats/FAR

And resides in /opt/gnats with all databases in /opt/gnats/share/gnats (FAR is one of them).

databases file is in /opt/gnats/etc/gnats and looks like this without the comments:

FAR:Field And Repair Database:/opt/gnats/share/gnats/FAR
Development:Development and RMA Database:/opt/gnats/share/gnats/Development
QualitySystem:Quality System Database:/opt/gnats/share/gnats/QualitySystem
Production:Production Database:/opt/gnats/share/gnats/Production

and the gnatsd.host-access looks like this:
*:edit:

I really do not have a clue and would appreciate any input on how to debug this.

Regards,
/Tume