Hello,
it seems that you are missing cygserver.
I am just doing some testing of 8.0.4 vs 8.1.2 under cygwin and I get
the same when I forget cygserver.
After you install cygwin, do the following -
export CYGWIN=server (not clear if needed, try without it)
unset LANG (not clear if needed, try without it)
export PATH=/usr/bin:/usr/sbin:/usr/local/pgsql/bin:$PATH
/usr/bin/cygserver-config
cygserver &
Then you do -
./configure
make
make install
in the source directory.
Then -
export CYGWIN=server (makes initdb use the cygserver)
initdb -D /usr/local/pgsql/data
This should work.
Iv