For me, this solution isn’t working. I changed those settings in phpmyAdmin and wp-config.php, so I now have utf8/utf8_romanian_ci. There are some romanian characters I can see, but other that are still unreadable.
Ok, so I have the same problem, after upgrading from Fantastico to WordPress 2.2.
I even tried re-posting one article with romanian characters and after submit, the characters got messed up again.