PG 7.0: ERROR: Client encoding is not supported

psql (PostgreSQL) 7.0.0

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trurl@random:~$ psql test
Welcome to psql, 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
test=> show server_encoding;
NOTICE:  Current server encoding is SQL_ASCII
SHOW VARIABLE
test=> show client_encoding;
NOTICE:  Current client encoding is SQL_ASCII
SHOW VARIABLE
test=> \c trurl
ERROR:  Client encoding  is not supported
Previous connection kept
test=> \q
trurl@random:~$ psql
Welcome to psql, 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
trurl=> show client_encoding;
NOTICE:  Current client encoding is SQL_ASCII
SHOW VARIABLE
trurl=> show server_encoding;
NOTICE:  Current server encoding is SQL_ASCII
SHOW VARIABLE
trurl=>
trurl=> \c test
ERROR:  Client encoding  is not supported
Previous connection kept
trurl=> \q