Codepage - problem, latin2 V8 windows db and 8_00_0101 odbc

Hello!

We have an application we used on V8 cygwin with earlier odbc drivers for windows (the latest
7xxxx) and had no problem.

Now we switched to V8 windows native database engine and V 8_00_0101 odbc,
and this setup eats all the latin2 characters (hungarian: őű etc).

In postgresql.cnf  I set client_encoding to 'latin2'.

When when I connect with odbc, the odbc log shows this:

DSN info: DSN='pggcp_pet',server='localhost',port='5432',dbase='gcp5',user='postgres',passwd='xxxxx'
          onlyread='0',protocol='6.4',showoid='0',fakeoidindex='0',showsystable='0'
          conn_settings='',conn_encoding='OTHER'
          translation_dll='',translation_option=''

How to set it up in the odbc driver or config?

thanks in advance

Robert