Newbie cannot create tablespace

Hi List,

I'm trying to create a tablespace using the following command copied
from pg_dumpall,

CREATE TABLESPACE test OWNER postgres LOCATION 'd:/prodb';

I receive the following message

ERROR: directory "d:/proddb" is not empty

a \db yields

List of tablespaces
Name | Owner | Location
----------------------------------------------
pg_default postgres
pg_global postgres
(2 rows)

More background.
I had a Postgres 8.3.7 database at d:/prodb at one time. It was working fine.
I decided to blow 8.3.7 it away and install 8.4.1. (I'm running on
windows Server 2008 and I was getting shared memory errors).

After running the 8.4.1 one step installer , I used mklink /d to make
links replacing pg_log, pg_clog, and pg_xlog in d:/proddb, to
correspondingly named folders on c:\postgres, (worked fine on 8.3.7).
I used pg_dumpall on my test system with the intent of using pgsql -f
db.out as a way to load the 8.4.1 database.

But, I can't get pass the first step in the restore - namely the
CREATE TABLESPACE command above.

Any help would be appreciated. Thank you.

Rich