<?php

function convertToCroatian($name) {

    $string = $_POST[$name];

    $array = array();
    $array["___SH___"] = "Š";
    $array["___CH___"] = "Ć";
    $array["___CX___"] = "Č";
    $array["___DH___"] = "Đ";
    $array["___ZH___"] = "Ž";
    $array["___sh___"] = "š";
    $array["___ch___"] = "ć";
    $array["___cx___"] = "č";
    $array["___dh___"] = "đ";
    $array["___zh___"] = "ž";

    foreach ($array as $item => $value)
        $string = str_replace($item, $value, $string);

    return $string;
}

$name = convertToCroatian('name');
$address = convertToCroatian('address');

$query = "INSERT INTO table (name, address) VALUES ('$name', '$address');";

$con = mysql_connect("localhost","**********","*********");
mysql_select_db("**********", $con);
mysql_set_charset('utf8',$con);
mysql_query("SET character_set_client=utf8", $con);
mysql_query("SET character_set_connection=utf8", $con);

mysql_query($query);

echo "status=ok";

?>