ignoring unconvertible UTF-8 character???

Question:
In my cmd window (win32 port) I get multiple lines containing this
error:
WARNING: ignoring unconvertible UTF-8 character 0xc3b5
WARNING: ignoring unconvertible UTF-8 character 0xc3bb
(these appear to be the o" and o" letters in Hungarian*

I am using the build under English WinXP, US regional settings, a
postgres database with LATIN2 encoding,
and inserting characters from the Hungarian character set iso-8859-2
(supposedly covered by LATIN2 - I also tried creting the db with
-Eiso-8859-2, with same results) - as mentioned specifically o" and u"
seem to be problematic, although oddly enough, they do seem to be
inserted.... I'm confused... what does this warning mean, and why am I
getting it?

Oddly enough during DB creating and loading from a dump (by copy) no
errors are thrown, although a lot of text data with
these characters is inserted.

I haven't seen anyone mention anything like this, so I thought I'd
mention it.

Cheers,
Ati

also... what does this mean?
LOG: could not recognize system timezone, defaulting to "Etc/GMT-1"
my system is set for GMT+1.. kindof normal I'd say.. or is this just a
problem with win32?