I tried to install postgresql 8.4 in my windows 7 (64 bit). But it fails with following messages in log
Initialising the database cluster (this may take a few min
For me the problem was that PATH variable did not have C:\Windows\system32 and so it did not find ICACLS command to change folder permissions. So the solution is to add C:\Windows\system32 to system PATH variable (if it does not contain it already):
;C:\Windows\system32 (or wherever your windows path is)