Redmine

We are using Redmine 1.3.0 with postgres 8.4 on GNU/Linux:
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Ruby version 1.8.7 (x86_64-linux)
RubyGems version 1.3.7
Rack version 1.1.2
Rails version 2.3.14
Active Record version 2.3.14
Active Resource version 2.3.14
Action Mailer version 2.3.14
Active Support version 2.3.14
Edge Rails revision unknown
Application root /var/lib/redmine
Environment production
Database adapter postgresql
Database schema version 20110902000000

About your Redmine plugins
HTTP Authentication plugin 0.3.0-dev
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Postgres database collation is UTF-8.

When I create a new issue, for example titled "Ämber", and try to search for it it is only found when I search for it in lower case "ämber".
It looks as if mysql is not affected, since in redmine demo environment I cannot replicate this problem: http://demo.redmine.org/search?q=%C3%84mma&scope=all&all_words=&all_words=1&titles_only=&issues=1&submit=Submit

I have found a fix for it though: http://www.redmine.org/issues/1608
After modifying the relevant file and installing the unicode gem the problem is solved.