Errors in RCP Enabled job using ODBC Connector

[VCInDSX]

Hi All,
I have been using ODBC Enterprise stage in my PX job that uses RCP to read from sequential files and load into target tables (MS SQL Server 2005)
Seq File ==> Transformer ==> ODBC Enterprise

I wanted to try the same design using ODBC Connector stage and the job design is
Seq File ==> Transformer ==> ODBC Connector

However with this approach i am getting the following error

ODB_TargetTable: [IIS-CONN-DAAPI-000067] Schema reconciliation detected a size mismatch for field EmpId. When moving data from source field type STRING(min=0,max=20,charset=ISO_8859-1:1987) into target field type STRING(min=0,max=20,charset=UTF-8), truncation, loss of precision or data corruption can occur. Use STRING(min=0,max=60,charset=UTF-8) for target type (CC_DBSchemaRules::reportSizeMismatch, file CC_DBSchemaRules.cpp, line 1,560) [pxbridge.C:2833]

The target table DDL does not have NVARCHAR columns at all. Given below is the table definition
CREATE TABLE [ILXRawFull].[EmpDateTest](
[EmpId] [varchar](20) COLLATE SQL_Latin1_General_CP1_CI_AS NOT NULL,
[EmpName] [varchar](50) COLLATE SQL_Latin1_General_CP1_CI_AS NULL,
[Address1] [varchar](50) COLLATE SQL_Latin1_General_CP1_CI_AS NULL,
[RawRecCreatedDate] [datetime] NULL CONSTRAINT [Dft_EmpText_RawRecCreatedDate] DEFAULT (getdate()),
) ON [PRIMARY]

The OSH file is as follows
record
{final_delim=end, delim='|', quote=none, padchar='#'}
(
EmpId:string[max=20] ;
EmpName:nullable string[max=50] {null_field=''};
Address1:nullable string[max=50] {null_field=''};
)
The DataStage server is NLS enabled and the job properties for NLS contains "Project default (ISO-8859-1)". Not sure why the message is suggesting "Use STRING(min=0,max=60,charset=UTF-8) for target type".

Has anyone been successful in using RCP with ODBC Connector stage?

Thanks in advance for your time,