Doing a quick Google search on the error message brings up what look to be shady solutions to the error message.
Doing a Google search on site:microsoft.com shows plenty of examples where the error message may be returned but in my quick search I did not see a solution. It does look to be related to Domain controller / Active Directory error of some kind.
As Domain / Active Directory that would lead me towards a security setting issue with the service. You may want to double check the service "Log on As" property and make sure it is still valid.
As a side note the default Pervasive PSQL requester setting is to NOT use the "Client Engine". As such unless you have changed the configuration you could leave the service stopped without any issues as it is an optional component.