Porblems migrating a server.

I have a very old postgres server that I am trying to move the data off
of. It is running 7.1 and has been trouble free for 6 plus years.
I am trying to move the data base off to a server running 8.1.
I have managed to back up the data using PG_Dump using like this.
" pg_dump -b -Fc -h stan.someplace.com -u phone >phone.data"
But I have had no luck getting PG_Restore to restore the data.
Any suggestions on what the command line should look like?
Is it a problem going from 7.1 to 8.1? If so how do I get around it?
The data does use some large objects for text files if that is any help.
We set this up as a test system and it ran so well no one wanted to take
it down. I really want to migrate it before the PII 266 it is running on
gives up the ghost  :)