Createdb problems

I am trying to create a database on a mounted volume.
I have used initdb and created the cluster fine.
I have set an environment variable for the PATH, and restarted postgres but
when I go to use the createdb --location=PATH dbname
I get the following error

cp: /volumes/hood/postgres/base/26916: Too many levels of symbolic links
ERROR:  CREATE DATABASE: could not initialize database directory
ERROR:  CREATE DATABASE: could not initialize database directory
pqReadData() -- backend closed the channel unexpectedly.
        This probably means the backend terminated abnormally
        before or while processing the request.
The connection to the server was lost. Attempting reset: Server process (pid
652) exited with status 11 at Wed Feb 20 23:51:30 2002
Terminating any active server processes...
Server processes were terminated at Wed Feb 20 23:51:30 2002
Reinitializing shared memory and semaphores
The Data Base System is starting up
Failed.
!# DEBUG:  database system was interrupted at 2002-02-20 23:48:29 CST
DEBUG:  CheckPoint record at (0, 1522940)
DEBUG:  Redo record at (0, 1522940); Undo record at (0, 0); Shutdown TRUE
DEBUG:  NextTransactionId: 636; NextOid: 26916
DEBUG:  database system was not properly shut down; automatic recovery in
progress...
DEBUG:  ReadRecord: record with zero len at (0, 1523004)
DEBUG:  redo is not required
DEBUG:  database system is in production state


Any insight here?