Marcin,
I just created a db with "createdb -E latin1" and imported my old (sql-ascii) database...
As I had my /etc/profile set to PGCLIENTENCODING='unicode' I first had to do a:
PGCLIENTENCODING='latin1' ; export PGCLIENTENCODING
before I could import the database. Otherwise errormsg occurred...
When I enter the database via shell psql and don't want to see corrupted special characters I also have to set:
PGCLIENTENCODING='latin1' ; export PGCLIENTENCODING
Does this sound correct and familiar???