This page indicates that Greek letters can be inserted into Emacs by using M-i. However, Emacs 23.2.1 in a Debian Squeeze variant inserts the \"tab\" character when
M-i
You can set your input method to Greek:
M-x set-input-method RET greek
or
C-x RET C-\ greek
(which is the same). To set the input method back press C-\ (toggle-input-method).
C-\
toggle-input-method