Help: Postgres, Java and Extended Characters?

Help,

I have moved an application from one Linux box to another, running
Java

Java(TM) 2 Runtime Environment, Standard Edition (build 1.3.1-b24)
Java HotSpot(TM) Client VM (build 1.3.1-b24, mixed mode)
Redhat7.1
Apache JServ 1.1.2
servlet-2.0
PostgreSQL 7.1.2

On my old setup, extended chars (e.g. å, ä and ö) all displayed fine,
but
now they just appear as a ?

Can somebody advise what I need to change to get these to display
correctly in the servlet generated html page.

Process is as follows:
Servlet retrieves data from postgres and display it in an html page.
If I have the following in the database table (ausgewählten), it
displays as (ausgew?hlten)
If, I have the following in the table (ausgewählten), it will
display correctly.

Iam at a loss as to where the problem lies. Encoding in both db's is
SQL_ASCII. Is it Linux, Apache, Java, or Postgres that is producing
this strange scenario?

Any ideas? TIA