Error inserting data to bytea column in 8.4

In 8.4, script

create temp table test ( test bytea );
insert into test values(E'\274')

Causes error

ERROR:  invalid byte sequence for encoding "UTF8": 0xbc
HINT:  This error can also happen if the byte sequence does not match the
encoding expected by the server, which is controlled by "client_encoding".

In 8.2 this script runs OK.

How to insert data to bytea field ?

Andrus

Both server and client are running in windows.

"PostgreSQL 8.4.0, compiled by Visual C++ build 1400, 32-bit"

show client_encoding
"UNICODE"