Hello Jimmy,

I experimented a little and this works for me. I can write data with accented characters to a PSQL table through DFBTRDRV and read it back with ODBC_DRV with embedded SQL.

As far as I can tell I use the same setup you do. I have set the OEM/ANSI conversion flag in the DSN setup.
I used the Pervasive ODBC interface (not Unicode).Click image for larger version. 

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I also tried with the Pervasive ODBC Unicode Interface and that also worked, although it was a bit harder to setup.
I tried with 32bit and 64bit ODBC divers and both work for me.
I used Pervasive driver version 13.00.52.00

What Pervasive version and Pervasive ODBC driver are you using?