Forum OpenACS Q&A: Response to Character Set Problem with web form input
tils@tp:~$ psql -l
List of databases
Database | Owner | Encoding
oacs | tils | UNICODE
About the weird characters in the error log: that's ok - propably because the terminal or whatever you use to look at the log does not understand unicode. Also psql will display those weird characters in an otherwise correct setup. There are some older threads here on this topic where this is explained much better.
Depending on your version of OpenACS and Aolserver you might need some of Henry Minski's patches to make form input work correctly.
I run a recent cvs checkout of OpenACS 4 and Aolserver 3.3ad13, and that combination seems to contain all necessary fixes already.