I was installing the Director module directly from git, and ran into this small issue concerning how the 'Character' is set when configuring the Resource.
First you can see with the screen shot that the encoding for the database is set to UTF8, given in the directorpsql.png.
Then I configured the new resource for director, show in directoricingaresource1.png, this I put the 'Character Set' to 'UTF8'.
This gives an error when configuring Director in the overview page, shown in directoroverview.png. You can see its complaining about changing the encoding to 'utf8' lower case.
So I did that and this also validated in the resources page. directoricingaresource2.png.
Now the overview page does not complain about it anymore since its 'utf8' instead of 'UTF8', which is a bit annoying and confusing ....
Guess this could be fixed? There really should be no reason why it throws the error.