phranque - 6:35 am on Jul 29, 2011 (gmt 0)
everything displayed on your page must be in the same encoding - text from the database, templates, included files, etc.
then your html document should have the encoding declaration immediately after the document head, like:
<meta http-equiv="content-type" content="text/html; charset=utf-8">
regarding your database, you will likely have to dump the database, convert the file to utf8, change all the latin1 declarations to utf8, create a new database with utf8 character support, and import the converted db dump file.