There's a simpler method of doing this, even without the AD version of AOLServer (+ad13). You can use the current 3.4.2 AOLServer from aolserver.com or Sourceforge.
The only thing you need to do is place some undocumented params in your config.tcl:
ns_section "ns/encodings"
ns_param adp iso8859-1
ns_param tcl iso8859-1
Then it's even ok if you run "ASCII" encoding in your Postgres database, Latin1 will work also. I don't think (as by now) you have
to use the (slow) Unicode stuff with Postgres.