I have pretty much the same setup as you - PostgreSQL 7.4.2 / Nukes 1.0 - and i worked thru it by fixing a setup.xml file and then recompiling. I posted bugs on SourceForge with my fixes so go take a look there. I think one of them was rolled into the CVS so checking out the updated code (not sure if it's in main or HEAD) might work. Not sure if the other was ever updated in the code. Here are links to the bugs on SF (with fixes noted)...
Nukes Users table bug
BB Module prune_enable (closed bug)
These issues were fixed, and are in the CVS snapshot.
I am looking to use this in production. I have tried 2 different snapshots but they seem to have trouble building.
You just need the setup.xmls for the BB and core modules. They can just drop into your build.
I have no troubles building using the latest CVS. What build problems do you have?
I downloaded the latest snapshot and went to the build directory and typed build it told me build not expected at this time :-s