IrDA range is limited to 1 meter, so if you are getting a range of a foot or two, it's about average. I expect that the lens on the Empeg, and the proctective lens on the Palmpilot may limit that even more, and like Oliver said, sunlight will screw with your range, too. I have had to shade the Empeg a bit with my hand to get it to beam in . I think that the IrDA ports on Palms after the III series are a bit better, but we are definately not talking remote range here. IrDA is used in this application as a way to avoid plugging the Palm into the Empeg with a wire, and it works well, you just have to hold it somewhat close.
Eventually I see BT taking over what I'm doing with IrDA. OBEX, which I am using is used with BT also.