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As far as I know, (according to the online 2 Day DBA documentation) oracle recommends using Unicode AL32UTF8 as the database character set for VARCHAR and AL16UTF16 for NVARCHAR2.
Yes thanks for your input but not that is not relevant, WE8MSWIN1252 is valid database character set.
We have a cots product using that database that is not compatible with utf8 as database characterset so I cannot change to AL32UTF8. This is why oracle created a "N" type column to handle just this type of requirement
For NLS_NCHAR_CHARACTERSET only UTF8 or AL16UTF16 are valid
The database client must bind its input variables appropriately for data to travel directly from the client to the NVARCHAR2 column, without intermediate representation in the database character set. See here: http://docs.oracle.com/cd/E11882_01/server.112/e10729/ch7progrunicode.htm#CACGCEAI and here http://docs.oracle.com/cd/E11882_01/server.112/e10729/ch7progrunicode.htm#i1008882