The steps that are missing from the various replies in this thread is how to figure out the value to specify for 'default character set id' and 'default sortorder id'.
To see the available character sets, run this query:
select id, name, description from master..syscharsets where type < 2000
(if the desired charset is not shown, use the 'charset' client program to load it)
To see the available sort orders:
select id, csid, name, description from master..syscharsets where type >= 2000
(here, csid is the 'id' value from the previous query which you specified for 'default character set id'
In my ASE server, I'm using character set ID = 190 and sort order id = 24 for UTF8 with utf8bin sort order. Make sure to verify the correct values in your server.