Make sure the connection to your database is also using this character set:
$conn = mysql_connect($server, $username, $password);
mysql_set_charset("UTF8", $conn);
According to the documentation of mysql_set_charset
at php.net:
Note:
This is the preferred way to change the charset. Using mysql_query() to execute
SET NAMES .. is not recommended.
See also: http://nl3.php.net/manual/en/function.mysql-set-charset.php
Check the character set of your current connection with:
echo mysql_client_encoding($conn);
See also: http://nl3.php.net/manual/en/function.mysql-client-encoding.php
If you have done these things and add weird characters to your table, you will see it is displayed correct.