BUG #5230: Limit operator slows down

The following bug has been logged online:

Bug reference:      5230
Logged by:          aftab
Email address:      akhangd@hotmail.co.uk
PostgreSQL version: 8.3.8
Operating system:   Centos 5
Description:        Limit operator slows down
Details:

S1="SELECT *
FROM position WHERE
position.POSITION_STATE_ID=2 AND
position.TARGET_ID=18
ORDER BY position.ID DESC
 ";

 S2="SELECT *
 FROM position WHERE
 position.POSITION_STATE_ID=2 AND
 position.TARGET_ID=18
 ORDER BY position.ID DESC
 LIMIT 1
 ";

 S1 takes 0.16ms compared to S2 which takes 5 secs. Both S1 and S2 are same
except "LIMIT 1 " is added to S2.

Query Plan for S1:

 QUERY PLAN
----------------------------------------------------------------------------
-------------------------------------------------------------
 Sort  (cost=209341.40..209767.55 rows=170457 width=297) (actual
time=0.200..0.200 rows=1 loops=1)
   Sort Key: id
   Sort Method:  quicksort  Memory: 25kB
   ->  Bitmap Heap Scan on "position"  (cost=5050.22..146754.50 rows=170457
width=297) (actual time=0.188..0.189 rows=1 loops=1)
         Recheck Cond: (target_id = 18)
         Filter: (position_state_id = 2)
         ->  Bitmap Index Scan on position_target_fk  (cost=0.00..5007.61
rows=170912 width=0) (actual time=0.134..0.134 rows=2 loops=1)
               Index Cond: (target_id = 18)
 Total runtime: 0.275 ms
(9 rows)

Query Plan for S2:

 QUERY PLAN
----------------------------------------------------------------------------
----------------------------------------------------------------------------
---
 Limit  (cost=0.00..2.43 rows=1 width=297) (actual time=3053.220..3053.221
rows=1 loops=1)
   ->  Index Scan Backward using position_pkey on "position"
(cost=0.00..413713.28 rows=170459 width=297) (actual time=3053.216..3053.216
rows=1 loops=1)
         Filter: ((position_state_id = 2) AND (target_id = 18))
 Total runtime: 3053.297 ms
(4 rows)