foriegn characters

blckspder

Hello, I am having a problem with foreign characters.. they keep coming out jumbled...

here is the code where I process the form and use the function utf8_encode:

//loop through the array and escape all of the elements
		foreach($formValues as $key => $arrItems) {
			$formValues[$key] = mysql_real_escape_string(utf8_encode($arrItems));
			}

My website charset is set to utf-8, my mysql table is set to InnoDB for the engine, utf8 for the charset and utf8_general_ci for the collation... however we just had someone submit a form and got this for their company name:
RepresentaÃƒÂ§ÃƒÂ£o

notice the mess at the end. any help would be appreciated. Thank you.