Creating a new DB on a fresh installation

I have been trying for some time now to get my installation of Postgres
running under cygwin.

Windows XP SP 1
Latest version of Cygwin
Latest version of Postgres 7.4.3 I believe

When I try to create a new db using the template1 in pgadmin I get the
following error message:

ERROR: could not initialize database directory
DETAIL: Failing system command was: cp -r
'/usr/share/postgresql/data/base/1' '/usr/share/postgresql/data/base/17145'
HINT: Look in postmaster's stderr log for more information

When I look in the error log I see the following:
ERROR: could not initialize database directory
DETAIL: Failing system command was: cp -r
'/usr/share/postgresql/data/base/1' '/usr/share/postgresql/data/base/17144'
HINT: Look in the postmaster's stderr log for more information.
cp: cannot stat `/usr/share/postgresql/data/base/1': No such file or
directory

So has anyone had this problem? Anyone know how to fix it?

I imagine it has something to do with file permissions in windows but I have
been playing with those too and I am completely stuck.

Thanks for any help
Mark