initdb error

I'm running into the following error message when running initdb (FreeBSD host):

ygg# /usr/local/etc/rc.d/postgresql initdb -D /zdb/pgsql/data --debug
The files belonging to this database system will be owned by user "pgsql".
This user must also own the server process.

The database cluster will be initialized with locales
COLLATE: C
CTYPE: en_US.UTF-8
MESSAGES: en_US.UTF-8
MONETARY: en_US.UTF-8
NUMERIC: en_US.UTF-8
TIME: en_US.UTF-8
The default text search configuration will be set to "english".

creating directory /zdb/pgsql/data ... ok
creating subdirectories ... ok
selecting default max_connections ... 100
selecting default shared_buffers ... 32MB
creating configuration files ... ok
creating template1 database in /zdb/pgsql/data/base/1 ... FATAL:
could not open file "pg_xlog/000000010000000000000001" (log file 0,
segment 1): No such file or directory
child process exited with exit code 1
initdb: removing data directory "/zdb/pgsql/data"

My best guess is that it has something to do with permissions, but I
really have no idea. Has anyone seen this before and found a way
around it?

-David