BUG #6002: French character show garbled

The following bug has been logged online:

Bug reference: 6002
Logged by: Savita
Email address: savita(dot)halli(at)gmail(dot)com
PostgreSQL version: 8.3.5
Operating system: AIX
Description: French character show garbled
Details:

Hi

We are facing a problem while inserting a Latin character (é) into
Postgresql. We are using postgresql-8.3-604.jdbc3.jar to connect to the PSQL
and trying to insert the following statement: "Vérification" through JDBC.
Once inserted we went back to PSQL and ran the select query and the result
is different: Vérification. Here the character é is being replaced by
é.

Could any one please help us in resolving this problem as we are stuck with
this?

Note: We have even tried this on Database with encoding SQL_ASCII and UTF8
as well.

Thanks
Savita