Project description doesn't show accentuated characters correctly

Hello,
I have Agiletrack 1.1.4 server installed on windows server 2003.
I'm using MySQL server 5.0.4.5 for the database
My agiletrack client 1.1.4 is running on a windows xp service pack3 machine and is connecting to the Agiletrack server using JSON-RPC Direct.

When I try to use accentuated characters in the description field while creating a project and save the project, the accentuated characters are replaced by a square character like this—> �
Characters like éàç ect. are not saved as accentuated character in the database but as �.
On the other hand if I insert the accentuated character directly in the database (Using sqlyog) the characters will display correctly in the AgileTrack description filed until I modify the description again and resave it. Then they revert back to � in the database.

I tried modifying the encoding of the table field from utf8 to Latin and other encoding but this had no effect.

From what I can understand its like there is some kind of conversion done by agiletrack before the value is saved to the database.

Any help would be greatly appreciated.

Thanks