If the system gives the above database error then PostgreSQL needs to be reinstalled ,kindly download the file for PostgreSQL using the blue Download button on the right and follow the steps given below. Please make sure you are logged in with your Bentley login to be able to Download.
Step 1) Uninstall PostgreSQL from control panel
Step 2) Delete the folder(PostgreSQL) from program files(86) as well as from My computer-->Manage-->local user-->user-->PostgreSQL.
Step 3) Download the required files attached for restoration.
Step 4) Install the PostgreSQL .exe file by right clicking and click on Run as administrator.postgresql-8.3 (2).zip