Using the PSQLv10 64-bit engine is greatly preferred in this environment. With that size of database, I would recommend setting up 5GB to 6GB of L1 database cache and disabling the L2 cache and System Cache. This will keep a majority of the data in memory and in thew working set at all times, and it should positively fly.
Of course, raw I/O performance is only half of this. With SQL apps, you need to have well-designed SQL queries (using indices), and well-designed database (providing proper indices for the queries to use). You may wish to look at this one query at a time with the Query Plan Viewer and make sure that the queries are being optimized as you expect.