select lower('ÆØÅ ABC'); does not work as expected

Hi there!

I'm useing postgresql 7.3.2, and having trouble with the lower(string)
function and the Danish special chars:

mydatabase=> select lower('ÆØÅ ABC');
lower
---------
ÆØÅ abc
(1 row)

The Danish chars does not convert to lower chars.

I've seen answers to this problem, suggesting a configure option called
--enable-locale, but this does not apply to 7.3.2 as it says in the
release notes: "Both multibyte and locale support are now always
enabled.". The --enable-locale option is no longer there.

Any ideas?