I've got WP 2.0 and it's set to run feeds as UTF-8. My website is also set to UTF-8. Yet, whenever my website pulls the WP feed from the wp-rss2.php feed URL, the following characters have issues:
apostrophe/single quote (')
double quote (")
Each of these shows up as a question mark (?) on my site. You can see an example on my test page: http://www.jrothraministries.com/index2.php -- look under the Latest Blog section... the ? in the title should be a single quote '