I need to copy data from remote Postgres server that has limited disk space and limited connectivity to a server I have a remote Postgres server recording some data every second. the server has very less space like 6-7 GB, currently I write data to a remote VM server but due to poor connectivity the applications fails everyday without notice (I believe as I get error 0x80004005 which is a ODBC related error). I need to fix this and I thought if I can run a local server which store data and the VM server periodically connects>copies>confirms data>deletes the original data. So that even if the connectivity issues occurs the VM can try next time and when gets the data executes the procedure. I can fix this interval as hourly or daily to avoid the data loss.

I am a newbie on DB and really stuck with an app that needs some fix. (The original developer of the app is not available so I have need to get this fixed by myself). Someone please help.
It sounds like you don't need a local server, just a queue file that you write the data to then insert in batches into the server when it's available. 

Just log to a local CSV file or something.

Alternately, you could use something like Londiste (from Skytools) to replicate the rows from a local server to the remote. It's pretty fault-tolerant.

Finally, the team I'm involved in will soon be releasing a new replication option for PostgreSQL that would meet your needs rather nicely. It's a few weeks/months off production release, though.