Hi Nathan,
I think it is a previlege problem, but I can't guarantee that. Open up pgAdmin II and connect to your postgres database server. Right click on [users] and a menu will appear. Select [create object] then select [user]. Fill out the form that appear assigning a user name and password. This will create a new user complete with password for the new user.
Then make the following selections:
databases-->[yourdatabase]-->tables-->[yourtable]
While [yourtable] is highlighted right click on it. From the menu that appears select properties. A window dialogue will appear for [yourtable]. Select the security tab. Click on the drop down window and select the [user] you set up above. Then select [All]. This will grant insert, delete, and update privileges for the selected [user] to access [yourtable].
Make sure the connection string contains all the relevant information; although, It seen it would since you said you receive a connection successful message.
Then try to execute the view again and see if a cursor is returned.
Remember, you can also open a browse window in pgAdmin II by selecting a table and then clicking on the large [view a table] icon at the top of the form. Once the view a table window is opened, you can even add and edit records in the postgres table from pgAdmin II; although, it is much more ackward and slow using psAdmin II than it is using a VFP 7 view.