The following bug has been logged online:

Bug reference:      4352
Logged by:          Bhaskar Sirohi
Email address:      [EMAIL PROTECTED]
PostgreSQL version: 8.3
Operating system:   Windows 2003 Server
Description:        Service fails to start when moved from domain to
workgroup
Details: 

It seems there is an issue with Postgres v8.3 that if you move the postgres
server from domain to workgroup the service fails to start with
logon-failure.

If you right click on postgres service, and check "log-on" in properties it
says "./postgres". Even resetting postgres service user password doesn't
have any impact. Finally if you change the "log-on" to "local system
account" it works well.

Please advise what could be done for the above case and whether it would be
okay to run the postgres service under the local windows account.

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