[Koha] utf-8 and Z39.50 and record import, international chars not being shown properly?

[H.S.]

Hello,

I am using a recent snapshot of Koha 3.0. When I try to search for a
record which probably has a language than English in it, it appears that
I am not able to get that language in the Z39.50 dialog.

Take ISBN 96912064 for example. If I search for this in COLUMBIA
UNIVERSITY [clio-db.cc.columbia.edu], I get:
Title: Paänjåabåi Yåunåiwarasiòtåi Fåarasåi-Paänjåabåi kosha =

And the MARC record as:
Koha -- Cataloging: MARC Import

LDR 01550mam a2200385 a 4500
001     2160993
005     20030429123500.0
008     970424s1996    ii       d   s000 0 pano
010    _a   96912064
020    _a8173802130
025    _aI-Pan-96-912064; 07
035    _a(OCoLC)ocm36807043
035    _a(OCoLC)ocm36807043
035    _9ANM8035CU
040    _aDLC
       _cDLC
041 0  _apanper
042    _alcode
050 00 _aPK2631
       _b.P346 1996
245 00 _aPaänjåabåi Yåunåiwarasiòtåi Fåarasåi-Paänjåabåi kosha =
       _bPunjabi University Persian-Punjabi dictionary = Panjåabåi
Yåunåivarsitåi Fåarsåi-Panjåabåi lughat /
       _csaçnkalanakartåa Jåita Siçngha Såitala ; saòmshodhaka Gulawanta
Siçngha ; mukkha sampåadaka Råajindara Siçngha Låambåa.
246 31 _aPunjabi University Persian-Punjabi dictionary
246 31 _aPanjåabåi Yåunåivarasitåi Fåarsåi-Panjåabåi lughat
246 30 _aFåarasåi-Paänjåabåi kosha
246 30 _aPersian-Punjabi dictionary
246 30 _aFåarsåi-Panjåabåi lughat
260    _aPaòtiåalåa :
       _bPabalikeshana Biåuro, Paänjåabåi Yåunåiwarasiòtåi,
       _c1996.
300    _a1017 p. ;
       _c22 cm.
546    _aPanjabi and Persian.
500    _aIncludes index.
650  0 _aPersian language
       _vDictionaries
       _xPanjabi.
650  0 _aPanjabi language
       _vDictionaries
       _xPersian.
700 1  _aSåitala, Jåita Siçngha,
       _d1911-
700 0  _aGulawanta Siçngha.
700 1  _aLåambåa, Råajindara Siçngha.
710 2  _aPunjabi University.
       _bPublication Bureau.
900    _aAUTH



Are those funny characters supposed to appear as they do above? If the
above somehow show something different, I have posted the screen shots here:
http://picasaweb.google.ca/hs.samix/Screenshots#

BTW, I have the UTF-8 enabled in apache2, it also enabled for all users
on the computer on which Koha is installed.

Thanks.