How to remove the current database and populate the database with new data?

Hi,

I've some test data in a database and would like to delete that database and clean everything that is associated with
thatdatabase.  Then I'd like to populate the same database with different data. 
My plan is to:
(1) Remove the /usr/local/pgsql/data directory
(2) psql -e mydatabase -f /tmp/indumpfile.txt & > /tmp/outdumpfile.txt (/tmp/indumpfile.txt has all the sql statements
torestore the database) 
(3) Restart the postgres server

Not sure if I need to run the VACCUM command, because I know Postgres 8.3.8 has the auto-vacuum daemon on to perform
VACCUMswhen it's necessary.  Did I miss any other steps for cleaning up? 

Please advise.

Thanks
Mary