Troubles using German Umlauts with JDBC

Hi,

  we have troubles with German umlauts (e.g.: äüÖ) using the Postgresql JDBC
  driver form the 7.1.2 distribution... already tried to debug our Java
  software but it seems that the database driver modifies the umlauts in any
  way - a debug before any INSERT or after a SELECT query shows that the
  umlaut "ü" for example gets lost on the way though the JDBC driver...

  So e.g. the attribute city='München' gets "M\?nchen" when testing the JDBC
  driver using a simple Java program.

  Any idea what happens?

  Best regards,
  Alex T.