BUG #3872: backslash_quote = off doesn't work any more

The following bug has been logged online:

Bug reference: 3872
Logged by: David Gradwell
Email address: david(at)gradwell(dot)com
PostgreSQL version: 8.3-beta3
Operating system: Windows Server 2003
Description: backslash_quote = off doesn't work any more
Details:

set backslash_quote = off in postgresql.conf

create table a (a1 varchar(100))

insert into a(a1) values ( '\602')

gives ERROR: invalid byte sequence for encoding "UTF8": 0x82'

It worked fine in 8.2 !!

In fact to meet the sql standard we shouldn't have to change the conf file.
The default should be SQL compliance !!

I can email the current and 8.2 conf files if helpful.

Thanks