BUG #4604: Instalation error: Failed to run initdb: 255!

The following bug has been logged online:

Bug reference: 4604
Logged by: Brans van der Heijden
Email address: quicknbrite(at)thehigherhand(dot)com
PostgreSQL version: 8.2 -> 8.3.5
Operating system: Vista Ultimate SP1
Description: Instalation error: Failed to run initdb: 255!
Details:

Hello,

Today I decided it would be a good idea to update postgresql 8.2 to 8.3.5
for performance reasons..

I backed up, dropped all db, uninstalled postgresql and removed all
remaining folders.

Now installation of 8.3.5 does not complete, initdb fails. giving the error
message Failed to run initdb: 255!

Help is very much appreciated!

Regards,

Brans