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Postgresql databases default to an encoding style of ASCII. Although this is traditional, UTF8, an encoding that can handle almost any language and character set, is preferable. This is how to convert an existing postgresql database to utf8:
pg_dump asciidatabase > ascii.sql
iconv -f iso8859-1 -t utf-8 < ascii.sql > utf.sql
createdb --encoding=unicode utfdatabase
psql utfdatabase < utf.sql
It worked for me, anyway!
