sygserver fails with "failed to create named pipe, fatal error on IPC transport"

Dear List,

Thanks to earlier help from you all, I went back and installed the proper
cygserver for the new 7.4.3. But I cannot get it to run. I see in the
README that :

""On Windows NT/2000/XP or 2003, you should always run Cygserver as a
   service under LocalSystem account.  This is the way it is installed
   for you by the /usr/bin/cygserver-config script."

I am running WinXP Pro. But I do not know how to do this (sorry, a real
Windows beginner), could someone please talk me through it? I presume this
is the cause of the failure described below.

Thanks very much,

David

ps,

I have been through the readme for cygserver and postgresql install and
checked permissions and added both CYGWIN and CYGSERVER to Windows system
environment variable with value of server. If I just try to start up cygserver:

$cygserver  <i.e. started with no parameters>
cygserver: Initialization complete.  Waiting for requests.
cygserver: failed to create named pipe: is the daemon already running?
cygserver: fatal error on IPC transport: closing down"