invalid byte sequence for encoding "UTF8": 0xff

Hello All,

I have a data script which runs fine from PgAdmin SQL Editor,but when I run this from command prompt I get following error:

test=# \i /usr/local/pgsql/qsweb1/QSWEB_100_4_Default_Data.sql

psql:/usr/local/pgsql/qsweb1/QSWEB_100_4_Default_Data.sql:1: ERROR: invalid byt
e sequence for encoding "UTF8": 0xff
HINT: This error can also happen if the byte sequence does not match the encodi
ng expected by the server, which is controlled by "client_encoding".

can anybody suggest me what is going wrong.
database encoding :UTF8

PostgreSQL details:

version
-------------------------------------------------------------------------------------------------------
PostgreSQL 8.2.0 on i686-pc-linux-gnu, compiled by GCC gcc (GCC) 3.4.3 20041212 (Red Hat 3.4.3-9.EL4)