BUG #2222: Can not reinstall due to account errors

The following bug has been logged online:

Bug reference: 2222
Logged by: Jim B
Email address: jimshell(at)talk21(dot)com
PostgreSQL version: 8.0.3
Operating system: XP pro
Description: Can not reinstall due to account errors
Details:

Having uninstalled postgres 8.0.3, I needed to reinstall on the same PC
running locally.

Note that the original postgres user account has been deleted.

During the install, when I try to intall a new account name (postgres) and
install as a service I get the following error...

It informs me that
"Sucessfully granted the 'log on as service' right"

Then gives the following Account Error:
"Invalid username specified: Logon failure: user not allowed to log on to
this computer."

I've tried different account names to 'postgres' with the same results. The
account im using for the install is a administrator account.