Eu tenho um programa C conectando-se a um banco de dados MSSQL por meio deFreeTDS.

Estou tentando executar um procedimento armazenado com um parâmetro varchar definido como algo como "Saída Liberada", mas está sendo armazenado com caracteres estranhos no MS SQL, como na captura de tela acima:

Aqui está o meu freetds.conf:

#   $Id: freetds.conf,v 1.12 2007/12/25 06:02:36 jklowden Exp $
#
# This file is installed by FreeTDS if no file by the same
# name is found in the installation directory.
#
# For information about the layout of this file and its settings,
# see the freetds.conf manpage "man freetds.conf".

# Global settings are overridden by those in a database
# server specific section
[global]
        # TDS protocol version
        tds version = 8.0

        # Whether to write a TDSDUMP file for diagnostic purposes
        # (setting this to /tmp is insecure on a multi-user system)
        dump file = /tmp/freetds.log
;       debug flags = 0xffff

        # Command and connection timeouts
;       timeout = 10
;       connect timeout = 10

        # If you get out-of-memory errors, it may mean that your client
        # is trying to allocate a huge buffer for a TEXT field.
        # Try setting 'text size' to a more reasonable limit
        text size = 64512

        client charset = UTF-8

Aqui estão algumas partes do arquivo de despejo tds:

log.c:196:Starting log file for FreeTDS 0.91
        on 2016-05-17 19:19:41 with debug flags 0x4fff.
iconv.c:330:tds_iconv_open(0xaed19130, ISO-8859-1)
iconv.c:353:Using trivial iconv
iconv.c:187:local name for ISO-8859-1 is ISO-8859-1
iconv.c:187:local name for UTF-8 is UTF-8
iconv.c:187:local name for UCS-2LE is UCS-2LE
iconv.c:187:local name for UCS-2BE is UCS-2BE
iconv.c:349:setting up conversions for client charset "ISO-8859-1"
iconv.c:351:preparing iconv for "ISO-8859-1" <-> "UCS-2LE" conversion
iconv.c:391:preparing iconv for "ISO-8859-1" <-> "ISO-8859-1" conversion
iconv.c:394:tds_iconv_open: done

...

net.c:741:Sending packet
0000 01 01 00 84 00 00 00 00-20 45 58 45 43 20 55 50 |........  EXEC UP|
0010 5f 49 4e 53 45 52 54 4d-4f 56 49 4d 45 4e 54 4f |_INSERTM OVIMENTO|
0020 20 27 32 30 31 36 2d 30-35 2d 31 37 20 31 39 3a | '2016-0 5-17 19:|
0030 31 39 3a 33 31 2e 30 30-30 27 2c 27 30 30 30 30 |19:31.00 0','0000|
0040 30 30 30 30 30 30 36 34-38 33 30 35 37 30 33 30 |00000064 83057030|
0050 27 2c 27 53 27 2c 30 2c-32 2c 27 50 43 56 43 30 |','S',0, 2,'PCVC0|
0060 34 20 3d 20 53 61 c3 ad-64 61 20 4c 69 62 65 72 |4 = Sa.. da Liber|
0070 61 64 61 27 2c 34 2c 27-50 43 56 43 4d 41 4e 41 |ada',4,' PCVCMANA|
0080 47 45 52 27            -                        |GER'|

De acordo com o log do freetds, ele está enviando o caractere 'í' (i agudo) como anúncio c3, o que significa que está enviando como UTF-8 (LETRA LATINA PEQUENA COM AGUDA).

Como posso configurar o cliente ou o servidor para que a string possa ser armazenada corretamente?

Atualização 1:

# tsql -C
Compile-time settings (established with the "configure" script)
                            Version: freetds v0.91
             freetds.conf directory: /etc
     MS db-lib source compatibility: no
        Sybase binary compatibility: yes
                      Thread safety: yes
                      iconv library: no
                        TDS version: 4.2
                              iODBC: no
                           unixodbc: yes
              SSPI "trusted" logins: no
                           Kerberos: no
#

Atualização 2

Código para conectar:

ret = SQLDriverConnect(db_msserver_dbc_handle,
    NULL,  "Driver={FreeTDS};Server=FooBar;Port=1433;Database=Foo;UID=sa;PWD=pwd@123;APP=XPTO;TDS_Version=8.0;",
    SQL_NTS, outstr, sizeof(outstr), &outstrlen,
    SQL_DRIVER_COMPLETE);