Server misconfiguration???

Hi to all,

I have the following configuration:
Dual Xeon 2.8 Ghz, 1G RAM and postgre 8.0.3 installed.

Modified configuration parameters:

max_connections = 100

shared_buffers = 64000 # 500MB = 500 x 1024 x 1024 / (8 x 1024) (8KB)
work_mem = 51200 # 50MB = 50 x 1024 KB
maintenance_work_mem = 102400 # 50MB = 100 x 1024 KB

checkpoint_segments = 10

effective_cache_size = 25600 # 200MB = 50 x 1024 / 8

client_min_messages = notice
log_min_messages = notice
log_min_duration_statement = 2000

I get the feeling the server is somehow missconfigured or it does not work at full parameter. If I look at memory allocation, it never goes over 250MB whatever I do with the database. The kernel shmmax is set to 600MB. Database Size is around 550MB.

Need some advise.

Thanks.
Andy.