how to make collation work

Hi all,

I am a beginner in Linux and Postgres too, so take this into consideration.
I have installed Fedora Core 3, and PostgreSQL 8.0.2 from source on it. All
right so far. Now I would like to have a Hungarian collation in my tables.
This is what I have tried so far:
I checked what Hungarian locales my Linux supports. These are: hu_HU,
hu_HU.iso88592, hu_HU.utf8, and hungarian. So far I have tried the first and
the second with initdb, set the --locale, --lc-collate and --lc-ctype to
that locale. But after filling a table with Hunagrian characters, and
selecting it all with order by didn't give the result I expected. The
encoding of the database and the client was both LATIN2. Neither worked the
upper() and lower() functions correct with Hungarian characters.

What did I do wrong? Please help.

Thanks,
Otto