Rails - Apr 2007 - activerecord utf8 special characters odd behavior

Since upgrading to Rails 1.2.* my ActiveRecord has not been acting
properly:

When I perform a .find and give a UTF8 string as a conditional, the
select statement gives me the following:

SELECT * FROM albums WHERE (name = ''Medúlla'')

When I perform a .save on a model UTF8 and other characters ( . ! )
get stripped out of the query:

INSERT INTO albums (`name`) VALUES(''Medlla'')

The database encoding is set to utf8 in the database.yml file.
character_set_database and character_set_system are both set to utf8
in the mysql database.

Thoughts?


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