I had an identical issue. The way to work around that was: 1. Either "Run as Administrator" when you invoke the setup 2. If that doesn't work, upon the failure of the installation, the folder in the ProgramFiles will already have been created. It will have an Installation.log file. Delete that file, and then add "Everyone" with Full Rights to the jasperreports-server-cp-5.2.0 folder. Re-run your setup, and you'll be fine. The core of the issue is that postgreSQL is trying to invoke NTFS permissions right onto the folder itself, and if it fails for some reason - the whole install fails. By granting full rights to "Everyone", you're avoiding that problem. Of course - be aware of possible security implications of running through such course, and adjust your strategy accordingly. Good luck!