socket error while creating database in windows98

We have installed beta version of postgres 7.2.1 on
windows98.
Initdb went through.
while createing
c:\>pgsql>creatdb sample

following error message is being displayed

psql.exe: cound not connect to server: socket error, No
decription available (0X0000274D) is the server running on
host localhost and accepting TCP/IP connection on port
5432.
Please kindly help us in solving this problem.
regards
guru