It took me a while but I was able to get this working finally after going through the suggestions offered and additional web searches being done. I used the information in the following YouTube video created by Mactasia:
http://www.youtube.com/watch?v=y1c7WFMMkZ4
When I did this I saw the file with .lock as the extension. However I still got the error when I tried to start the Rails Server when I resumed working on my Rails application using PostgreSQL. This time I got a permission denied error. This is when I remembered that not only did I have to change listen_addresses in the plist but I also had to change unit_socket_permissions to 0777. I also logged in as root to change the permissions on the var/pgsql_socket folder where I could access it at the user level. Postgres is working fine now. I am in the process of reloading my data from my SQL backup.
What I did not understand was that when I had wiki turned on PostgreSQL was supposedly working when I did a sudo serveradmin fullstatus postgres but I still got the error. Oh well.