BUG #4621: Password is shown on the terminal

The following bug has been logged online:

Bug reference: 4621
Logged by: Rizwan Akbar
Email address: rizwan(dot)akbar(at)catalisse(dot)com
PostgreSQL version: 8.2
Operating system: Windows XP
Description: Password is shown on the terminal
Details:

Steps to reproduce: -
1) Take a dump of any database from the console.
2) Now restore the DB by using the following command and parameters.
psql -U postgres testdb < D:\backups\jan1809.sql
3) When you press 'Enter' button, system asks for the password.
4) When you type password, it is shown in the plain text instead of in
encrypted form or hidden from the user.

Expected Result: -
1) Password should be hidden or *s should be shown.

Note that I am using the Win XP with service pack 3.