BUG #1355: 8.0.0 rc2 installer fails

The following bug has been logged online:

Bug reference: 1355
Logged by: Scott Stillwell
Email address: sstillwell(at)kc(dot)rr(dot)com
PostgreSQL version: 8.0
Operating system: Windows XP Pro SP2
Description: 8.0.0 rc2 installer fails
Details:

When installing PostgreSQL 8.0.0 rc2 on my computer (Windows XP
Professional, SP2 and all current patches), I accepted all defaults (with
the exception of assigning a password to the local Windows account and the
postgres password). I get the following error near the end of the process:

Failed to run initdb: -1073741512!
Please see the logfile in 'C:\Program
Files\PostgreSQL\8.0.0-rc2\tmp\initdb.log'.
Note! You must read/copy this logfile before you click
OK, or it will be automatically removed.

While the dialog box is still displayed, I checked the initdb.log file. It
is zero bytes with no contents.

After clicking OK, the installer rolls back, at which point I get another
dialog titled "Fatal Error" saying

Installation ended prematurely because of an error.