Possible encoding issue (win7)

Hi

Using a Delphi app with ZEOS components to connect to server (on
localhost) and get this message:
SQL Error: invalid encoding name in PGCLIENTENCODING: WIN1252
(Running Windows 7 (64x), postgres 8.3.7)

Initially I installed with server and client encoding as WIN1252. But
since I got the error I tried an re-installing with
locale = C, encoding = LATIN1 (server and client). But this did not
solve the problem.

From the little info I found on the web, I also tried "SET
CLIENT_ENCODING TO 'LATIN1'" but also had no effect.
Read a couple of times about *environment variable* PGCLIENTENCODING,
but could find no such variable.

Heard about colleagues having some problems installing on Windows7.
Could this be one of them?

Any help would be appreciated.

gmbouwer