diff --git a/configure b/configure
index 1a09a8226870da9508f5ba331c4d7a6489e07787..bd84605af0ff807d0bbb51294ec31e37db4cf8a1 100755
--- a/configure
+++ b/configure
@@ -11395,8 +11395,9 @@ LIBOBJS="$LIBOBJS qsort.$ac_objext" ;;
 esac
 
 # Win32 can't to rename or unlink on an open file
-case $host_os in win32*|mingw*)
-LIBOBJS="$LIBOBJS dirmod.$ac_objext" ;;
+case $host_os in mingw*)
+LIBOBJS="$LIBOBJS dirmod.$ac_objext"
+LIBOBJS="$LIBOBJS copydir.$ac_objext" ;;
 esac
 
 if test "$with_readline" = yes; then
diff --git a/configure.in b/configure.in
index 774f439829bd2da4e2071f156fd061e3d02de4c3..670e5960d7e4c00a8932cd2bedf0d2e0edf7ccd5 100644
--- a/configure.in
+++ b/configure.in
@@ -1,5 +1,5 @@
 dnl Process this file with autoconf to produce a configure script.
-dnl $Header: /cvsroot/pgsql/configure.in,v 1.250 2003/05/15 16:35:27 momjian Exp $
+dnl $Header: /cvsroot/pgsql/configure.in,v 1.251 2003/05/15 17:59:17 momjian Exp $
 dnl
 dnl Developers, please strive to achieve this order:
 dnl
@@ -863,8 +863,9 @@ AC_LIBOBJ(qsort) ;;
 esac
 
 # Win32 can't to rename or unlink on an open file
-case $host_os in win32*|mingw*)
-AC_LIBOBJ(dirmod) ;;
+case $host_os in mingw*)
+AC_LIBOBJ(dirmod)
+AC_LIBOBJ(copydir) ;;
 esac
 
 if test "$with_readline" = yes; then
diff --git a/src/backend/commands/dbcommands.c b/src/backend/commands/dbcommands.c
index 1c3b554c291c9f1134b1db13db02c9b4de497ff4..bd436878189a6cf49dfd6a7dcb88e291ad09b60f 100644
--- a/src/backend/commands/dbcommands.c
+++ b/src/backend/commands/dbcommands.c
@@ -9,7 +9,7 @@
  *
  *
  * IDENTIFICATION
- *	  $Header: /cvsroot/pgsql/src/backend/commands/dbcommands.c,v 1.114 2003/05/07 03:47:08 momjian Exp $
+ *	  $Header: /cvsroot/pgsql/src/backend/commands/dbcommands.c,v 1.115 2003/05/15 17:59:17 momjian Exp $
  *
  *-------------------------------------------------------------------------
  */
@@ -311,11 +311,10 @@ createdb(const CreatedbStmt *stmt)
 	/* Copy the template database to the new location */
 #ifndef WIN32
 	snprintf(buf, sizeof(buf), "cp -r '%s' '%s'", src_loc, target_dir);
+	if (system(buf) != 0)
 #else
-	snprintf(buf, sizeof(buf), "xcopy /e /i /q '%s' '%s'", src_loc, target_dir);
+	if (copydir(src_loc, target_dir) != 0)
 #endif
-
-	if (system(buf) != 0)
 	{
 		if (remove_dbdirs(nominal_loc, alt_loc))
 			elog(ERROR, "CREATE DATABASE: could not initialize database directory");
diff --git a/src/port/copydir.c b/src/port/copydir.c
new file mode 100644
index 0000000000000000000000000000000000000000..cd39f4d07ee4de004481023833bafd346876ddd4
--- /dev/null
+++ b/src/port/copydir.c
@@ -0,0 +1,44 @@
+/*
+ *	While "xcopy /e /i /q" works fine for copying directories, on Windows XP
+ *	it requires an Window handle which prevents it from working when invoked
+ *	as a service.
+ */
+
+#include "postgres.h"
+
+int
+copydir(char *fromdir,char *todir)
+{
+	DIR		   *xldir;
+	struct dirent *xlde;
+	char		fromfl[MAXPGPATH];
+	char		tofl[MAXPGPATH];
+
+	if (mkdir(todir) != 0)
+	{
+		elog(ERROR, "could not make directory '%s'",todir);
+		return 1;
+	}
+	xldir = opendir(fromdir);
+	if (xldir == NULL)
+	{
+		closedir(xldir);
+		elog(ERROR, "could not open directory '%s'",fromdir);
+		return 1;
+	}
+
+	while ((xlde = readdir(xldir)) != NULL)
+	{
+			snprintf(fromfl, MAXPGPATH, "%s/%s", fromdir, xlde->d_name);
+			snprintf(tofl, MAXPGPATH, "%s/%s", todir, xlde->d_name);
+			if (CopyFile(fromfl,tofl,TRUE) < 0)
+			{
+				closedir(xldir);
+				elog(ERROR,"could not create file %s\n",todir);
+				return 1;
+			}
+	}
+
+	closedir(xldir);
+	return 0;
+}