The rh-pgdump.sh script (given in the documentation as part of the standard upgrade procedure) tries to call /usr/lib/pgsql/backup/pg_dumpall_new The script is installed, however, as /usr/share/pgsql/backup/pg_dumpall_new Also, the initscript's message about finding an old version of the database includes an embedded literal "\n" string, which probably should be a newline. In general, the postgres 7.1 -> 7.2 upgrade process needs simplification - I didn't manage a successful upgrade even after adding a pg_dumpall_new symlink.
Th rh-pgdump script has been deprecated in 7.2-2 - it was useful for 6.5 -> 7