Sort with ORDER BY gives wrong results with german Umlaut charact ers

Hi,

when I do a select with ORDER BY I get a wrongly sorted list back.
Here my systems details:

SuSE Linux 7.3
PostgreSQL 7.1.3
contains readline, history, multibyte support

Following configuration:
initdb -E UNICODE
createdb test

table NAME with fields id and name
contains:
1, Anton
2, Ärger
3, Otto
4, Öczalan
5, Zwitter

If I do a
select * from NAME order by name;
I get the following output:

1, Anton
3, Otto
5, Zwitter
2, Ärger
4, Öczalan

which is not the right order (it should look like above).

When I can the encoding in psql to LATIN1 I still get the same wrong result.

My LC_ALL and my LC_COLLATE are both set to de_DE.

What did I do wrong here???

Cheers
Rainer