encoding problems

I'm not sure how to ask this question. I have written a function, and with
PostgreSQL 8.0.13 I can do a "\df+" and see something like this under Source
Code:

DECLARE
result text;
BEGIN
result := (SELECT SUBSTRING(fname FROM 1 FOR 1) ||
SUBSTRING(mname FROM 1 FOR 1) ||
SUBSTRING(lname FROM 1 FOR 1)
FROM employees WHERE id = empid);
RETURN result;
END;

If I create the same function on my computer running PostgreSQL 8.3.0 and try
the \df+ then the Source Code shows:

\x09DECLARE

\x09\x09result text;
:
\x09
:
\x09BEGIN
:
\x09\x09result := (SELECT SUBSTRING(fname FROM 1 FOR 1) ||
:
\x09\x09\x09\x09\x09\x09SUBSTRING(mname FROM 1 FOR 1) ||
:
\x09\x09\x09\x09\x09\x09SUBSTRING(lname FROM 1 FOR 1)
:
\x09\x09\x09\x09\x09\x09FROM employees WHERE id = empid);
:
\x09\x09RETURN result;
:
\x09END;

I've tried changing the database encoding and some other things, but can't
seem to fix this.