Executing: CreateEnterpriseGeodatabase PostgreSQL star-ags icm DATABASE_AUTH postgres ***** SDE_SCHEMA sde ***** # "C:\Program Files\ESRI\License10.1\sysgen\keycodes" Start Time: Mon Aug 06 15:13:53 2012 User has privileges required to create database objects. Geodatabase admin user already exists. Database already exists. Validated authorization file. User has required privileges for geodatabase setup. XML support is enabled for the database instance. You must copy the latest ST_GEOMETRY and dependent libraries to the PostgreSQL software location. Refer to the ArcGIS help topics for more details. Connected RDBMS instance is not setup for Esri spatial type configuration. Failed to execute (CreateEnterpriseGeodatabase). Failed at Mon Aug 06 15:13:54 2012 (Elapsed Time: 1.00 seconds)
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Navaneetha, since this thread is 2 years old and your issue is a little different, I would recommend creating a new thread with you error. You can include a link to this thread if you have already tried the steps outlined here. But as a new thread, you will likely get help directed at your issue.
By the way, I have seen that error before, but can't remember the cause or fix right now.