BUG #1403: Failed to create process: 2

The following bug has been logged online:

Bug reference: 1403
Logged by: Phil
Email address: philbarbuto@hotmail.com
PostgreSQL version: 8
Operating system: windows
Description: Failed to create process: 2
Details:

Running the msi installer gave thie above message

This qwould seem to indicate that "cmd.exe" is not in the system path,
or possibly that the postgres account does not have read access to this
file.

I'm assuming you got the message "Failed to create inidb process: 2",
and not literally as above. If that' not right, please post the exact
error message. Also, if the above does not solve the problem, exactly
which RC version is this?

//Magnus