Connect essentially logs in as the given user. This ensures that if you're restoring a database that all items are recreated owned by the right user - important for [PG not OpenACS] permission checking.
The big gotcha is that pg_dump doesn't guarantee all function definitions are dumped earlier than they're used - a minor and annoying but not dangerous bug. In OpenACS-land this is usually manifested by references to postgresql.sql-defined functions being in the dump before they're defined.
So I always do:
psql my_db -f acs-kernel/sql/postgresql/postgresql.sql
before attempting a restore then ignore the dup function definitions that result.