BUG #3609: Failed to create process for initdb

The following bug has been logged online:

Bug reference: 3609
Logged by: Darren Ginter
Email address: dginter001(at)hotmail(dot)com
PostgreSQL version: 8.2.4
Operating system: Windows XP (SP2)
Description: Failed to create process for initdb
Details:

I've been having a hard time getting Postgres installed on any Windows PCs
in a particular corporate environment due to an error "Failed to create
process for initdb" at the end of the install process (at which point
everything is rolled back). This is likely due to group policy restrictions
placed upon Windows.

I have solved the problem by creating in advance the user account for
postgres and manually specifying *explicit* security permissions to the
\PROGRAM FILES\POSTGRESQL\8.2\ folder (recursively - it likely needs the BIN
directory but I didn't get that granular in my troubleshooting). This
problem has been present for years now (ever since Postgres on Windows has
existed). A web search reveals only bug #1635 which does not have the
proper solution.

I'm submitting this with hopes that either (a) the bug can be fixed in
future versions or (b) this documentation can be referenced by others with
the problem. Thanks for a remarkable product (I've been using it on FreeBSD
with great success for ages).