Theo,
> I tried the -/var/log/postgresql.log option however I noticed no
> performance improvement. May be the fact that we use redhad linux and
> syslog, I'm no sys-admin, so I'm not sure if there is a difference
between
> syslogd and syslog.
Did you restart syslogd (that's the server process implementing the
syslog (= system log) service) after you changed its configuration?
In order to do so, try running
/etc/init.d/syslog restart
as root from a commandline.
HTH
Alex