The following bug has been logged online:

Bug reference:      2982
Logged by:          Dan Armbrust
Email address:      [EMAIL PROTECTED]
PostgreSQL version: 8.2.3
Operating system:   Windows XP
Description:        Install broken when not installed as a service
Details: 

If you try to install postgresql on windows XP, using the  msi installer,
and you choose to not install it as a service - when the install finishes -
it fails to run initdb.  If you try to run initdb manually, it results in a
message about "The program 'postgres' is needed by initdb but was not found
in
 the directory"...

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