I upgraded to WP2 over the holidays and have since had problems with accented characters in posts.
I use ecto on Mac OS X to post to my blog (http://www.escdotdot.com/blog/). I created a post using ecto with ö (o + umlaut): http://www.escdotdot.com/blog/2006/01/07/o/ . It uploads correctly, and views correctly when you visit the site.
However if I then have ecto refresh it's list of posts, it tells me that "The content for the entry "Ã¶" (138) on the server is different from the one that is stored locally. Are you sure you want to overwrite the local copy?". If I agree then the accented character changes to this new set of two characters (although the website still shows the correct character).
The post is shown correctly in the WP admin, so I don't understand why ecto thinks it has changed? If I write the same character in a post using the WP admin, the same thing happens - ecto downloads a post with these changed character.
Is there any way I can things to sync correctly?