unicode problem

Hi. I’ve upgraded from 0.9.6 in which the AjaxSearch fails with utf-8.
Now the whole backend-frontend does, AS too. 
Example: szemészet --> szemészet (this is Hungarian)

Until this can be solved, I go back to 0.9.6 with no AjaxSearch...

Make sure you have the proper database connection charset set in the config file; sounds like you simply have the wrong encoding specified.

It’s in Xampp. I made a copy of the 0.9.6 dir and renamed it. I made a copy of the db and renamed it (Unicode utf-8). In the config.inc.php file I did change the $dbase value to the copied one. At this point the copied site was OK.
Then I made the upgrade.
When I logged in, everything was in place and working, but the hungarian characters.
I noticed $database_connection_charset = ’’ changed to ’utf8’ in the above config.inc.php.
To poke it doesn’t make sense.
Edit: I checked the setting in phpMyAdmin, and then changed the ’utf8’ to ’utf8_unicode_ci’ according to the db. Then the site is showing the characters (except site name and AS).
The site config is set to Unicode (UTF-8)