Problem loading pg_dump file

Hello --

I'm having a problem loading a recent pg_dump of our production database.

In our environment we take a monthly snapshot of our production server and
copy that to our development server so that we have a recent batch of data
to work with.

However, when trying to load the file for this month's snapshot, we are (for
the first time) seeing a slew of errors, such as:

invalid command \N
invalid command \N
ERROR: syntax error at or near ""/>\n <img alt="" style="" at character 1
LINE 1: "/>\n <img alt="" style="border: 0;
^
ERROR: syntax error at or near "padding" at character 1
LINE 1: padding: 8px 0 0 0;
^
ERROR: syntax error at or near "height" at character 1
LINE 1: height: 2px;
^
ERROR: syntax error at or near "font" at character 1
LINE 1: font-size: 1px;
^
ERROR: syntax error at or near "border" at character 1
LINE 1: border: 0;
^
ERROR: syntax error at or near "margin" at character 1
LINE 1: margin: 0;
^
ERROR: syntax error at or near "padding" at character 1
LINE 1: padding: 0;
^
invalid command \N
invalid command \N

The commands I'm using to create and load the dump are:

on production:>
pg_dump bduprod_2 | gzip > bdu_01_21_07.gz

(transfer .gz file to development server)

on dev:>
createdb -T template0 -D disk1 -e -O lss -U postgres bdu_01_21_07
gunzip -c bduprod_2-01-21-07.gz | psql bdu_01_21_07

I'm also unzipped the .gz file and tried to load it directly via
psql psql bdu_01_21_07 < psql bduprod_2-01-21-07
with the same results.

I think I might be running into the UTF8 encoding issue mentioned in this
message:
http://archives.postgresql.org/pgsql-bugs/2006-10/msg00246.php

Both the production and dev servers are UTF8.

Obviously, beyond our monthly dev snapshots, I'm concerned about the
reliability of our production server backups.

Anyone have any ideas what the problem is? Is there a way for me to tell if
it is the UTF8 encoding problem mentioned above?
Any work arounds?

thanks in advance,
Mason