UTF8 Vs Latin9 and valid encoding.

Hello,
I am using postgres 8.1 for windows and have the
following dilema.

I have 2 databases, one encoded in UTF-8 and one in
Latin9.
In both DBs I can create the following test table:

CREATE TABLE "holaniño"
(
nombre varchar(5),
"titúlo" varchar(10)
)
WITHOUT OIDS;

Then in both DBs I can execute the following SQL:

select * from holaniño where titúlo = 'compania'

HOWEVER, when I change the SQL to:
select * from holaniño where titúlo = "compañia"

(changed the N to a Ñ in the filter)
I receive the error msg:
ERROR: invalid UTF-8 byte sequence detected near byte
0xf1

Where in the LATIN9 db, there is no problem.

Isn't UTF-8 the same as UNICODE where it encapsulates
all other coding schemes including latin9?

Any insight would be greatly apreciated.

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