I found this thread on the general list about 2 months ago:
http://marc.theaimsgroup.com/?l=postgresql-general&m=108271530922498&w=2
Is there any plans to make unicode more usable for sorting, LIKE, and LOCALE in the future? Reading that thread, and all the manuals, it seems that unicode is very limited; It really only works in one langauge in a database. So in reality, it'd just be simpler to use an 8 bit encoding on any postgres database, and a new database for each and every langauge that needs to be used by a company/site, if I have understood all the implications.