Untitled

ruby -v
ruby 1.8.6 (2008-08-11 patchlevel 287) [universal-darwin9.0]
rails -v
Rails 2.3.2
Mac OS X 10.5
(/Library/Ruby/Gems/1.8/gems/mongrel-1.1.5/ is used)

mysql --version
mysql  Ver 14.12 Distrib 5.0.67, for apple-darwin9.0.0b5 (i686) using readline 5.1

database.yml
development:
  adapter: mysql
  encoding: utf8
  reconnect: false
  database: tipsify_development
  pool: 5
  username: root
  password:
  socket: /tmp/mysql.sock

In my layouts/example.html.erb I have
<head>
  <meta http-equiv="content-type" content="text/html;charset=UTF-8" />
  ...

PROBLEM reproducing
controller:
def create
    puts ':inputparam', params[:inputparam]

'øøh' written in a textfield, clicking Create and it will output øhh as √∏hh.  ?? This will also be stored in the database.