problems accessing utf8 encoded databases

Hi:

I'm new to this list and to postgres, so hopefully this won't sound like a
stupid question. We are trying to connect from sas 9.13 service pack 3 to a
postgres database version 8.2.4. We are able to do so without any problems when
the databases are sql-ascii encoded, but get

ERROR: CLI error trying to establish connection: [unixODBC]client encoding
mismatch

I'm able to connect to the same server, different databases that are not UTF-8
encoded. I have UNICODE=UTF8 as a line in the odbc.ini. We are calling the sas9
program with a utf-8 encoding option. T

We are using 8.00.0100, but from what I've read it looks like utf-8 support
started in version 7.1. I didn't install the driver myself, but is there
something special I need to do to get utf-8 working with the odbc driver?

Mija