"Zero" downtime and minimal space requirements for upgrade to PostgreSQL 9.2
The two constraints that you have specified:


Very low downtime
Limited disk space use


conflict rather seriously.

You have (wisely, IMO) excluded the option of using pg_upgrade with a custom rebuilt Pg, which is the only option I see that'd satisfy both those constraints.

I suspect you'll have to drop the disk space constraint. The only way out of this that I see is to configure Slony-I to replicate from your 8.3 database to a new 9.2 instance deployed either on new storage on the same machine, or on a separate machine. Allow Slony-I to bring the replica up to date, then shut the old server down, disable replication and cut over to the new server. "New server" here can be a new 9.2 cluster running on a different port on the existing server hardware, it doesn't have to be a new physical or virtual machine.

At this point you can use streaming replication - or Slony-I again - to replicate the data back to a 9.2 instance on the original server and fail back to it. The temporary server used for migration can be retired, or (preferably, if it's real hardware) configured to operate as a streaming replication slave and WAL archiving repository for PITR and failover purposes.

Slony-I is a bit of an experience to work with and places some constraints on how you can use the DB (mainly: All DDL must go through Slony, not direct DDL commands), so I recommend taking a dump of the 8.3 server, restoring it to a test workstation, and testing the proposed replication setup there before attempting it in production. You will need to test your application on 9.2 anyway, so this is a good chance to do both. Test it on 8.3-with-slony, and on 9.2.

This might be a good opportunity to see professional support from people who have experience dealing with these issues.