Locale question

I have a (hopefully simple) question regarding locale.

I am migrating a postgresql database from a server running FC1 &
PostgreSQL 7.4 to a newer machine running FC2 and PostgreSQL 8.0.  I
dumped the data from the old server using pg_dumpall and restored it to
the new server with no problems, and while testing the new server
everything seems to be OK.

However, I did notice that the client and server encoding settings on
the old server are set to SQL_ASCII whereas those same settings on the
new server are set to LATIN1.

I'm wondering if I might wind up with some lurking problems since I
don't really understand all the implications of locale settings.

Thanks,

Matthew O'Connor

Details below:

On the old server
-bash-2.05b$ cat /etc/redhat-release
Fedora Core release 1 (Yarrow)
-bash-2.05b$ locale
LANG=en_US
LC_CTYPE="en_US"
LC_NUMERIC="en_US"
LC_TIME="en_US"
LC_COLLATE="en_US"
LC_MONETARY="en_US"
LC_MESSAGES="en_US"
LC_PAPER="en_US"
LC_NAME="en_US"
LC_ADDRESS="en_US"
LC_TELEPHONE="en_US"
LC_MEASUREMENT="en_US"
LC_IDENTIFICATION="en_US"
-bash-2.05b$ psql template1
Welcome to psql 7.4.3, the PostgreSQL interactive terminal.

Type:  \copyright for distribution terms
       \h for help with SQL commands
       \? for help on internal slash commands
       \g or terminate with semicolon to execute query
       \q to quit

template1=# show all;
              name              |                setting
--------------------------------+---------------------------------------
 client_encoding                | SQL_ASCII
 lc_collate                     | en_US
 lc_ctype                       | en_US
 lc_messages                    | en_US
 lc_monetary                    | en_US
 lc_numeric                     | en_US
 lc_time                        | en_US
 server_encoding                | SQL_ASCII


On the new server:
-bash-2.05b$ cat /etc/redhat-release
Fedora Core release 2 (Tettnang)
-bash-2.05b$ locale
LANG=en_US
LC_CTYPE="en_US"
LC_NUMERIC="en_US"
LC_TIME="en_US"
LC_COLLATE="en_US"
LC_MONETARY="en_US"
LC_MESSAGES="en_US"
LC_PAPER="en_US"
LC_NAME="en_US"
LC_ADDRESS="en_US"
LC_TELEPHONE="en_US"
LC_MEASUREMENT="en_US"
LC_IDENTIFICATION="en_US"
-bash-2.05b$ psql template1
Welcome to psql 8.0.2, the PostgreSQL interactive terminal.

Type:  \copyright for distribution terms
       \h for help with SQL commands
       \? for help with psql commands
       \g or terminate with semicolon to execute query
       \q to quit

template1=# \o foo
template1=# show all;
              name              |                setting
--------------------------------+---------------------------------------
 client_encoding                | LATIN1
 lc_collate                     | en_US
 lc_ctype                       | en_US
 lc_messages                    | en_US
 lc_monetary                    | en_US
 lc_numeric                     | en_US
 lc_time                        | en_US
 server_encoding                | LATIN1