Problems with permissions after CYGWIN upgrade

I refer to a recent post ...

Problems with permissions after CYGWIN upgrade
http://archives.postgresql.org/pgsql-cygwin/2003-03/msg00053.php
I have the same problem even though I am using the "postmaster -i" workaround you proposed.

This is a new installation:
Cygwin 1.3.22-1
cygipc 1.14
postgres 7.3.3

I believe I followed the install instructions in the README ... in particular

# cygrunsrv --install postmaster --path /usr/bin/postmaster --args "-D /usr/share/postgresql/data -i" --dep ipc-daemon --termsig INT --user postgres --shutdown

... this appears to specify the "-i" option.

The error I receive is as follows:

Administrator(at)xxx ~
$ psql -U postgres template1
psql: could not connect to server: Bad file descriptor
Is the server running locally and accepting
connections on Unix domain socket "/tmp/.s.PGSQL.5432"?

both the IPC-daemon and postmaster services are running

FYI
$ ls -l /tmp/.s*
-rwx------ 1 postgres None 51 Jun 15 18:21 /tmp/.s.PGSQL.5432
-rw------- 1 postgres None 31 Jun 15 18:21 /tmp/.s.PGSQL.5432.lock

BUT when logged in as user postgres ... psql works

All suggestions greatly appreciated