Problem with sorting on PostgreSQL 9.0.3

I'm having a problem with the sort of names with accents
In the version of postgres 8.4.3, I run the following command:

SELECT name FROM person ORDER BY name

And I have the following result:

name
-------------------------------------------------- -
Abel Clara Valentin
Abel Felipe Mundel
Abel Lopes de Amorin
Abel Rodriguez
...
Eric Alves de Lima
Erico Borinelli
Eric Brizola
Eric Correa
Eric Eichenberger
Erico Eichstadt
...
Zulmira Fatima Ribeiro Albrecht
Zulma Siewe
Zulmira Dutra da Rocha
(26,445 rows)

The bank orders usually, he puts his name with an accent in the right order,
or
That is, he does not think the accent to order, from what I saw.

In the PG version 9.0.3
I run the same command and got the following result:

name
-------------------------------------------------- -
Abel Clara Valentin
Abel Felipe Mundel
Abel Lopes de Amorin
Abel Rodriguez
...
Eric Alves de Lima
Erico Borinelli
Eric Correa
Eric Eichenberger
Erico Eichstadt
Erico Eischstaedt
...
Zulma Siewe
Zulmira Fatima Ribeiro Albrecht
Zulmira Dutra da Rocha
<C3> <89> Rich Brizola
(26,445 rows)

The "<C3> <89> Brizola rich" equals "Eric Brizola" the outcome of PG 8.4.3.

If someone can help me I appreciate it.

Hug.