TYPO3 Core

My testing setup: mysql 4.1.7, typo3 3.8.0-dev (from CVS), using utf-8 everywhere.

The problem: accented characters in page titles (in the page tree) now appears as "?".

When i try to edit such a page header, saving it fails with error: "102: These fields are not properly updated in database: (title) Probably value mismatch with fieldtype." But if i remove accented characters from page title, it saves successfully. The field definition is identical with what i had before (with 3.7.0, which is not suffered from this): title tinytext utf8_general_ci. I see 3 files are created in typo3temp/cs:
charset_iso-8859-1.tbl
csascii_utf-8.tbl
cscase_utf-8.tbl
The 1st one (iso-8859-1) looks very suspicious, because i never want to use this encoding anymore. It may be the cause of problem, may be there somewhere an internal charset conversion happens, like it was with mysql 4.0, where the internal mysql encoding where iso-8859-1.

So, the question likely is about how to eleminate the use of iso-8859-1 entirely, and switch to utf-8 only. Change config variables, or maybe comment out some code - where this thing is located?
(issue imported from #M547)