Replication Across Two Servers?

We had a 8.4.8 production server of PostgreSQL on a Dell blade server
which ran for 3 years fine. The server housed all our database needs
perfectly but sadly the entire machine died. The drives were dead and
the motherboard was fried but we did have daily full backups of the
entire machine. Today I received our new blade servers which will run
VMware & I get to create two new PostgreSQL servers. I wanted to make
a master database server and a slave in case the master dies. My
question is does PostgreSQL 8.4 or 9.1support synchronization between
two physical machines over Ethernet? I've never replicated any kind of
database before so I don't know if that's possible and the more I
search this on my own, the more confused I am. It appears in
PostgreSQL, the word "replication" has several different meanings.

If you had to stand up two individual Debian Linux servers running a
specific version of PostgreSQL, could / would you be able to have the
master also synchronize all data to a slave server?

Thanks for any info!