copy from problem

Hello all,
(Postgres 8.4.6 Windows)
I am stumped as to why I cannot import this using copy from within pgadmin
(the following table is created in an existing database with an encoding of
WIN1252 and the Postgres server_encoding is UTF8) :
CREATE TABLE test
(
  col_descr text
)
WITH (
  OIDS=FALSE
);
ALTER TABLE test OWNER TO postgres;
set client_encoding = 'WIN1252';
COPY test FROM 'C:\\pgtemp\\test.txt' with  delimiter as '|' csv;
select * from test;
--- col_descr
-- ----------------
--                 (empty row)

The file test.txt contains 1 line of 2 characters: éÉ  (acute accented
lowercase and uppercase e, hex(E9C9), valid win1252 characters.

Any help would be appreciated.
Mark