Somehow the new sql files for PostGIS 1.2 didn’t make it into the installer, the old 1.1 sql was still there. Corrected in r2 of Postgres 8.2 + PostGIS 1.2. There is also a separate download of just the sql files so you don’t need to download and install the whole Postgres package.
“The beast is actively interested only in now, and, as it is always now and always shall be, there is an eternity of time for the accomplishment of objects.” – the wisdom of Tarzan