It could be interesting to see what settings do you use for psqlodbc. BTW 08.01.0102 isn't very good. Please try 08.01.0107 development snapshot from pgfoundry.org. There is fixed a lot of bugs (Parse Statement, get values, stability, ...). Then you can try different options like use declare/fetch, Parse Statement, ... Different tasks need different options turned on.
I would love to try it, seeing as declaire/fetch doesn't change anything... Do I simple replace the dlls in C:\Program Files\psqlODBC\bin?