mysqldump included character_set_client magic
that is unknown before 4.1 even when asked for
an appropriate compatibility mode.

In compatibility (3.23, 4.0) mode, we do not
output charset statements (not even in a
"comment conditional"), nor do we do magic on
the server, even if the server is sufficient
new (4.1+). Table-names will be output converted
to the charset requested by mysqldump; if such
a conversion is not possible (Ivrit -> Latin),
mysqldump will fail.