Rails - Aug 2010 - how to disable character escaping in collection_select

I have a drop down using collection_select

  <%= form.collection_select(:country,@countries, :name, :name,options
={:prompt => t(''services.req_form.country_prompt'')},
:escape => false )
%>

I read somewhere that putting :escape => false in the options would
disable character escaping.

This does not seem to work. I am using the unicode values for french
accents and need to display the accent. However Rails helper escapes the
ampersand so I get the wrong code "&amp;" instead of
"&".

How can I stop this from happening.

Thanks
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