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in /etc/postgresql/8.4/main/postgresql.conf set shared_buffers = 1024MB or 1/4 system resources
allow kernel to allocate the memory sudo sysctl -w kernel.shmmax=1195352320. Notes this should be a few MB more than the shared_buffers to provide some wiggle room.
in /etc/sysctl.conf (or the appropriate /etc/sysctl.d/*.conf depending on your system), set the kernel memory so it gets recognized at next reboot: kernel.shmmax=1195352320
restart postgres
mod_wsgi
Optimal threads/processes for wsgi daemon?
Dont't use processes=1 for WSGIDaemonProcess (if you want a single process, leave it off entirely)