Character encoding in user table

I have a user with the username Åsmund (A with a small dot on top).

While running Drupal 4.6 the database was set to latin1 and when I looked at it using phpMyAdmin his username showed up as "Ã…smund" (A with a squiggle on top followed by three dots).

I didn't think much of it while running running 4.6, since it worked anyway. But after upgrading to 4.7, which changed the table to utf-8, his username is "Ã…smund" both in phpMyAdmin and in Drupal. So he can't login.

Running "ALTER TABLE users CONVERT TO CHARACTER SET utf8 COLLATE utf8_general_ci" manually on the orignal latin1 table does not help either. If I dump the table and look at it in Emacs the "Ã…" is replaced by (?)\203(?)\205 , where (?) is single character.

So I am wondering what trick 4.6 does in order to display them properly, and if there's a way I can convert them? Stories and other things have been converted correctly.

In addition to "Å" I am worried about "Æ Ø å æ ø" and any other characters people may have put in their usernames.

I appreciate any input.