What do these two commands show:
dpkg -l postgresql-8.3
ls -l /usr/lib/postgresql/8.3/bin
Could be file system corruption, or perhaps a full disk.
** Changed in: postgresql-8.3 (Ubuntu)
Status: New => Incomplete
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The program "postgres" is needed by initdb but was not found in the same
directory as "/usr/lib/postgresql/8.3/bin/initdb".
https://bugs.launchpad.net/bugs/361002
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