Perfomance of postgresql-7.0.3-2

Hi,

I have some problems with the perfomance when I run my program
and I'm just testing in two machines.

I have a diskless system.

This is what I have:

System Configuration:

Server

Architecture : Pentium II
Memory : 64Mb
Operating System : RedHat 6.2
PostgreSQL version : 7.0.3-2
Compiler used : FlagShip-4.48-7451
Others : FS2tools-4.48-7451
SQLkit_PG-1.00

Client - Diskless

Memory : 16Mb
Architecture : Pentium
Printer : TM930 Paralell Port

My database is 268 Mb, 60 tables, the largest table has about 181659
rows and 46 columns. I'm using index in each table.

When the program is running it stop for about 15 seconds and then
continues. I'd like to know what can I do for a better perfomance
because I need 40 clients machines.

Tell me if you need more information.

Regards,

Karla