G'Day,
I have a feeling your installer either can't run psql or that psql needs a password to be used. Go back further in the log file...you may find some other errors.
However in case it is what I suspect - here is the solution -
In sample openacs4-nsd.tcl conf file uncomment the section under /driver/postgres and set pgbin to the relevant directory (I installed postgres in a non standard dir and had to do this as it wasn't in my path). Also if you need to use a password to use psql then you will have to modify the proc, db_source_file, or change postgres access settings in pg_hba_conf to allow you to access pg withouth a password.
Cheers,
Hafeez
