I just moved Mantis serving bugs.cihar.com to this host and upgraded it also to latest stable version. However it still doesn't deal correctly with recent MySQL. I have no idea why all those PHP application guys ignore charset features in MySQL.
So if you want to use non ASCII chars in Mantis with recent MySQL and you need
core/adodb/drivers/adodb-mysql.inc.php and add at the end of
_pconnect funcions code to set connection charset:
mysql_query('SET NAMES \'utf8\'', $this->_connectionID);