initdb: could not change permissions of directory "C:/Program Files/PostgreSQL/8.4/data": Permission

Like others, I am seeing the setting of permissions on data folder fail with the one click installer of Postgresql 8.4.2. This is on Vista and I have seen it on 3 machines. I was able to reproduce the issue on a 4th machine by adding the machine to our domain and then adding a local user with the SAME username as the domain login username. The install ran fine when I ONLY had the domain user, but when I added the local user with same username, it failed. Both users had Admin rights. Log is attached.

So what I had was localmachine\jpappas
and domain\jpappas

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The files belonging to this database system will be owned by user "jpappas".
This user must also own the server process.

The database cluster will be initialized with locale English_United States.1252.
The default text search configuration will be set to "english".

fixing permissions on existing directory C:/Program Files/PostgreSQL/8.4/data ... initdb: could not change permissions of directory "C:/Program Files/PostgreSQL/8.4/data": Permission denied

Failed to initialise the database cluster with initdb