Windows 8.0 Install Failure

My install is failing on the display named "Service Configuration". The server is a Windows Server 2003, Standard
Edition.
Here is the dialog that took place: 
   Install as a service (checked)
   Service name: PostgreSQL Database Server 8.0 (default)
   Account name: postgres (default)
   Account Domain: MUSTCHANGE2
   (nothing entered in the two password fields)
Clicked "Next>"
   User postgres was not found. Would you like the account to be created for you?
Clicked "Yes"
   Generated a random password is: <psw>
Clicked "OK"
   Successfully created the 'Logon as Service' right.
Clicked "OK"
   Successfully created the 'Logon as Local' right.
Clicked "OK"
   X  Invalid user name specified: Logon failure: user not allowed to login to this computer.
 
Checked Start > Control Panel > Administrative Tools > Computer Management > Local Users & Groups > Users, and the
accountshows to be set up (don't know whether or not all of the options in the 7-tab box are set up correctly,
however).
 
 
Why is this login failing?