postgres 9.2 error whit apostrophes

Hello, excuse my English first

we recently move from pg9.0 to pg 9.2 whit this method:

from a new server PG9.2 we did:
pg_dump -h server -p 5432 -U user -Fc -i -b base-name > bk.backup

after that in the new server
createdb -T template0 -E LATIN1 basename
pg_restore -h server -p 5432 -U user -d basename bk.backup

now we are having problems with updates on tables  whit apostrophes like  >> o'higgins << on any character fields
First question:
            is there  any configurable parameter for PG9.2 that make 
            update tu02t00 set tu02pfusua = 'D'AGOSTINO'  work...
            the server error said   

ERROR: syntax error at or near "AGOSTINO" at character 187

Second question:
If there is no way to configure PG9.2 to accept this Cain of update
which is the best method to do a downgrade from 9.2 to 9.0 (we are not using any new function)


thanks in advance is ok?