client encoding mismatch help!

Hi All,

I have installed 8.1 server on a FC4 system and loaded my
7.3.2 database data (not too many problems) all is working well
except the odbc driver won't connect !
The database was built with no encoding options set, the driver
is psqlodbc-08_01_0102 with default options (but I have tryed many)

The Driver Log file follows :=
picking_pg      330-130    ENTER SQLAllocEnv
        HENV *              01644484

picking_pg      330-130    EXIT  SQLAllocEnv  with return code 0
(SQL_SUCCESS)
        HENV *              0x01644484 ( 0x016614f0)

picking_pg      330-130    ENTER SQLAllocConnect
        HENV                016614F0
        HDBC *              01640FC4

picking_pg      330-130    EXIT  SQLAllocConnect  with return code 0
(SQL_SUCCESS)
        HENV                016614F0
        HDBC *              0x01640FC4 ( 0x01661598)

picking_pg      330-130    ENTER SQLDriverConnectW
        HDBC                01661598
        HWND                001A01FC
        WCHAR *             0x1F7C4AA0 [      -3] "******\ 0"
        SWORD                       -3
        WCHAR *             0x1F7C4AA0
        SWORD                        8
        SWORD *             0x00000000
        UWORD                        3 <SQL_DRIVER_COMPLETE_REQUIRED>

picking_pg      330-130    EXIT  SQLDriverConnectW  with return code -1
(SQL_ERROR)
        HDBC                01661598
        HWND                001A01FC
        WCHAR *             0x1F7C4AA0 [      -3] "******\ 0"
        SWORD                       -3
        WCHAR *             0x1F7C4AA0
        SWORD                        8
        SWORD *             0x00000000
        UWORD                        3 <SQL_DRIVER_COMPLETE_REQUIRED>

        DIAG [22003] client encoding mismatch (214)
-------------------------------------------------------------------------------------------------

Please help, I need to get this system up an running in production pronto ;)

TIA,
    Frank.