> > is tetex supposed to work with the chosen encoding or do i need texlive?
> > what tex distribution do you use?
>
> utf8x.def is part of the "ucs" package for comprehensive unicode support.
>
> I use the texlive packages from Debian/testing which contain ucs in
> texlive-latex-recommended.
>
> I do not know whether ucs is part of tetex (or which tetex package it is
> in). But tetex should cooperate with it if you locally install ucs from
> CTAN.
just for archive purposes gentoo has ucs hidden under dev-tex/latex-unicode
package. i also got complaint about missing beramono.sty so dev-tex/bera
packages was needed too.
after removing \usepackage{kerkis} from preamble of the file you posted
i see everything correctly in postscript output.
pavel