WAL-related Problem?

I am running PostgreSQL version 8.0.3 on Windows 2003.

We have an application where it was not our intention to run WAL, since a
little data loss is not critical to us. Nevertheless, we want to capture as
many updates as possible.

I thought WAL was turned off because no parameters are set (see below), but
I evidently was wrong; this morning I had what appears to be a WAL error,
during a period of heavy transaction activity:
  LOG: could not rename "<dir>/pg_xlog/<log number" to "<next log number>"
continuing to try
Looks like, in the absence of specific parameters, default WAL values are
used; at the moment there are 10 files in pg_xlog directory. Of the 10 files
listed, it is trying to rename (probably re-use) the first of the 10, so it
will be the 11th in a 10-entry list.

There is no activity at all at the moment, presumably because database is
still trying to rename this log file, so everything is stopped.

#---------------------------------------------------------------------------
# WRITE AHEAD LOG
#---------------------------------------------------------------------------

# - Settings -

#fsync = true            # turns forced synchronization on or off
#wal_sync_method = fsync    # the default varies across platforms:
                # fsync, fdatasync, open_sync, or open_datasync
#wal_buffers = 8        # min 4, 8KB each
#commit_delay = 0        # range 0-100000, in microseconds
#commit_siblings = 5        # range 1-1000

# - Checkpoints -

#checkpoint_segments = 3    # in logfile segments, min 1, 16MB each
#checkpoint_timeout = 300    # range 30-3600, in seconds
#checkpoint_warning = 30    # 0 is off, in seconds

# - Archiving -

#archive_command = ''        # command to use to archive a logfile segment

QUESTIONS:
(1) What do I do to get this database running again?
(2) My current understanding is that turn WAL off, it is done my setting
fsync to 'false'. but assume I must take database down to do this.

Can anyone help?