I found this thread while trying to solve the same problem. I also am using UTF-8 files, and finding that FPDF assumes latin1, hence the problem.
For the pound sign, I cam up with:
substr('£', 1, 1)
This takes advantage of the fact that substr works on bytes not characters, and the UTF-8 pound sign in my code above has its second byte equivalent to the single byte latin1 pound sign.
It has the advantage over the iconv solution mentioned elsewhere in that it doesn't require an extension enabling.
-- Tim.