I have setup this feature using postgresql 8.3.1 on a suse linux version and pg_standby as a recovery script, works very good and I use rsync as a script to ship logs
This is my configuration in the primary D.B
archive_mode = on
archive_command = 'rsync -atz %p backup:/data01/wal_files/%f'
archive_timeout = 60
This is the recovery.conf in the backup server
restore_command = 'pg_standby -l /data01/wal_files %f %p %r -t /tmp/pgsql.trigger.5432 2>>/tmp/standby.log'
Hope this help you