'ascii' codec can't encode character u'\xe4'

hi,

I am doing some work in Finnish using django trunk. The code works fine
in the shell. But on the web, I am getting a strange error. I have a
model called Sponsor. If I give

print item.sponsor, I get:
Kumpumäki Raili 21755
print item.sponsor.lname, I get:
'ascii' codec can't encode character u'\xe4' in position 6: ordinal not
in range(128)

I am using postgres, and I have not seen this error in several years.
Why does it print Kumpumäki in one case and is unable to decode it in
the next case?
--
regards
Kenneth Gonsalves

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