iso8859-2 or latin2

#!/usr/bin/python
# -*- coding: latin2 -*-
import os, sys
print sys.getdefaultencoding()
print sys.getfilesystemencoding()

The result is the folowing:

mbcs
ascii

I use hungarian characters in my program.
I write an application for polisters in PythonCE 2.5
I'd like use it with tkinter and sqlite.

The sqlite database encoding can be utf-8 or iso8859-2.
I tried both.

The test code is folowing:
# -*- coding:utf-8 -*-
latin2_decoder = lambda s: s.encode("iso8859-2", "replace") # str(s)
from sqlite3 import dbapi2 as sqlite
con=sqlite.connect("\\SD Card\\work\\python\\cdata.db",isolation_level=None)
con.text_factory=latin2_decoder
cur=con.cursor()

cur.execute("select ctyid,name from cities")
row=cur.fetchone()
while row:
  print row[0],row[1]
  row=cur.fetchone()
con.close()

Printing hungarian specific characters are failed or simply rectangles
displayed in place of characters.

sys.setdefaultencoding() procedure doesnt exists.
Can anybody help me, please?

best regards
Zoltan