Is MS SQL 2008 running as 64 bit or 32 bit? If it's 32 bit, you should be able to create a PSQL ODBC DSN, then add the linked server by calling sp_addlinkedserver. Here's an example:
sp_addlinkedserver 'PSQLDEMODATAODBC', ' ', 'MSDASQL', 'DEMODATA'
where PSQLDEMODATAODBC is the linked server name, "MSDAQL" is the provider name, and "DEMODTA" is the PSQL ODBC DSN you created to point to the PSQL data.
Now, the above is for 32 bit. If you are using 64 bit, you'll need a 64 bit PSQL ODBC driver which is only available in PSQL v11. PSQL v10 has a 64 bit Btrieve engine but only 32 bit ODBC drivers.
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