In your pg_hba.conf file, I see some incorrect and confusing lines:
# fine, this allows all dbs, all users, to be trusted from 192.168.0.1/32
# not recommend because of the lax permissions
host all all 192.168.0.1/32 trust
# wrong, /128 is an invalid netmask for ipv4, this line should be removed
host all all 192.168.0.1/128 trust
# this conflicts with the first line
# it says that that the password should be md5 and not plaintext
# I think the first line should be removed
host all all 192.168.0.1/32 md5
# this is fine except is it unnecessary because of the previous line
# which allows any user and any database to connect with md5 password
host chaosLRdb postgres 192.168.0.1/32 md5
# wrong, on local lines, an IP cannot be specified
# remove the 4th column
local all all 192.168.0.1/32 trust
I suspect that if you md5'd the password, this might work if you trim the lines. To get the md5 you can use perl or the following shell script:
echo -n 'chaos123' | md5sum
> d6766c33ba6cf0bb249b37151b068f10 -
So then your connect line would like something like:
my $dbh = DBI->connect("DBI:PgPP:database=chaosLRdb;host=192.168.0.1;port=5433",
"chaosuser", "d6766c33ba6cf0bb249b37151b068f10");
For more information, here's the documentation of postgres 8.X's pg_hba.conf file.