why restoring a dump file is sooo slow

Hi,

I'm trying to restore a dump file that I created using:
pg_dump -CD dbname > dump.sql

the dump file size is about 87 Mb.

so I did this to restore:
psql -f dump.sql -U user template1

It takes almost an hour and a half to restore the database.

I'm just wondering if that is normal for such a small database (87Mb), or
is something wrong with how I did the restore or with my db configuration?
btw, it's on dual pIII server running redhat 7.3. with about 2G of memory.

thanks,
reynard