The following bug has been logged online:

Bug reference: 1673
Logged by: Iavor Raytchev
Email address: iavor.raytchev (AT) verysmall (DOT) org
PostgreSQL version: 8.0.3
Operating system: Windows XP Professional
Description: Can not run initdb on install and no log
Details:

C: is on FAT32 so I tried to install on E: which is NTFS. Pop up at the end
of install says 'can not run initdb - see ...log for details' but the log is
not there (even before I press the OK).

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