The following bug has been logged online:

Bug reference:      3919
Logged by:          Sergey
Email address:      [EMAIL PROTECTED]
PostgreSQL version: 8.3RC2
Operating system:   Windows 2003 SP2
Description:        Service Privileges Bug
Details: 

Postgre can't run under restricted user's account. Even if:
1) All 'service' rights to that account granted;
2) All 'disk' rights also granted (checked very carefully, '/data' in full
access, other dirs read and execute);

The error is 'Error 5 : Access denied'.

Changing the user to 'Local Service' solves the issue.

p.s.
Postgre 8.2 on the same machine under restricted user with same priveleges 
running quite.

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