psql file restore - problem with encoding

Hi all,

I have problem on one of our potentional client's linux server with data
encoding. I have played with this for some time but with no success.
Here is the problem:

I have dump file created with pg_dump on my dev linux machine
(PostgreSQL 8.0.1). When I upload the file to the client's server with
psql, the data is uploaded but it seems the strings were encoded once
again though file header states the data is in UNICODE and the database
is in UNICODE too.

The database was initialized with 'initdb --locale=cs_CZ.utf8 -D
/var/lib/pgsql/data'.

Here is a sample how the data look:
Akzent Media spole�nost s ru�ením omezený
and how they should look:
Akzent Media společnost s ručením omezeným

What is strange on the machine is that there are perhaps two versions of
postgresql installed - version 8.0.1 and 7.4.2 so I use the full path to
the 8.0.1. I think that the system is Fedora Core (but I'm not sure -
unfortunatelly I cannot catch the admin now). We have no real control of
the client's server so we cannot install, uninstall etc.

I have also tried to dump some data from our php app - with the same
result. phpinfo() says that php was configured against PostgreSQL 8.0.1
but it also says in PostgreSQL configuration info that there is
"PostgreSQL(libpq) Version 7.4.2".

It seems to me that the problem might be in:
1) the mixture of the two versions of PostgreSQL in the system
2) some problem with locale
3) something different

Can someone please help me to diagnose this problem so I can solve it
and move forward?

Thank you in advance.

Miroslav