Thanks for posting this information. I encountered the problem and this allowed me to quickly fix it.
I do not know what my server is using; phpinfo() says that
which mentions both charsets.
In any case, I had seen a symptom where it looked like things already in UTF-8 were being treated as if in ISO-8859 and being translated again into UTF-8. This made the name "Peña" appear as "PeÃ±a".
I found the OAI Repository Explorer helpful in testing the problem. It is at