Did you try to see if postgresql is listening on 5432? 

013-02-03 21:11:43::DEBUG::common_utils::291::root:: output = 
2013-02-03 21:11:43::DEBUG::common_utils::292::root:: stderr = psql: could not 
connect to server: Connection refused
        Is the server running on host "localhost" (::1) and accepting
        TCP/IP connections on port 5432?
could not connect to server: Connection refused
        Is the server running on host "localhost" (127.0.0.1) and accepting
        TCP/IP connections on port 5432?

2013-02-03 21:11:43::DEBUG::common_utils::293::root:: retcode = 2
2013-02-03 21:11:43::DEBUG::setup_sequences::59::root:: running _encryptDBPass
2013-02-03 21:11:43::DEBUG::common_utils::309::root:: Executing command --> 
'/etc/pki/ovirt-engine/encryptpasswd.sh ********'
2013-02-03 21:11:44::DEBUG::common_utils::335::root:: output = 
/usr/share/ovirt-engine 

----- Original Message -----

> From: "Nicholas Kesick" <cybertimber2...@hotmail.com>
> To: "oVirt Mailing List" <users@ovirt.org>
> Sent: Monday, February 4, 2013 4:18:42 AM
> Subject: [Users] [3.2 Beta]Creating DB fails

> Hey guys, I'm having a problem with engine-setup. When it gets to the
> creating database part, it fails. I've tried rebuilding the system
> (this time from Fedora minimal install) and I had the same problem.
> Any suggestions? I've attached the engine setup log and it basically
> ends with the "engine" database is not currently accepting
> connections.

> ovirt-engine-setup-3.1.0-4.fc17.noarch
> kernel 3.7.4-204.fc18.x86_64 (also tried with what came on the dvd)
> sytemctl status postgresql.service reports postgresql is active
> (running).

> - Nick

> _______________________________________________
> Users mailing list
> Users@ovirt.org
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