UNICODE and 8.0.0beta5

Hi,
I just downloaded the PostgreSQL 8.0.0b5 and the pg80b1.308.jdbc3.jar. I
compiled, installed, and created a database from scratch (i.e. initdb
and createdb) using default's for everything. When I try to run a Java
program, I get the following exception:

org.postgresql.util.PSQLException: Backend start-up failed: FATAL:
invalid value for parameter "client_encoding": "UNICODE".
        at
org.postgresql.core.v3.ConnectionFactoryImpl.readStartupMessages(ConnectionFactoryImpl.java:443)
        at
org.postgresql.core.v3.ConnectionFactoryImpl.openConnectionImpl(ConnectionFactoryImpl.java:98)
        at
org.postgresql.core.ConnectionFactory.openConnection(ConnectionFactory.java:63)
        at
org.postgresql.jdbc2.AbstractJdbc2Connection.<init>(AbstractJdbc2Connection.java:117)
        at
org.postgresql.jdbc3.AbstractJdbc3Connection.<init>(AbstractJdbc3Connection.java:30)
        at
org.postgresql.jdbc3.Jdbc3Connection.<init>(Jdbc3Connection.java:24)
        at org.postgresql.Driver.connect(Driver.java:183)
        at java.sql.DriverManager.getConnection(DriverManager.java:525)
        at java.sql.DriverManager.getConnection(DriverManager.java:171)
        ...

AFAIK this used to work. What has changed?

Regards,
Thomas Hallgren