well then change it back to entities .. specialchars will only encode "special" characters like ampersand and quotes whereas entities will encode EVERYTHING. entities is useful for sending characters to the browser in an entity form rather than byte code. generally this is only ever needed when you set the wrong charset in the header of the page or in the database.
so as a quick fix just change it back to entities ... if you want to try and leave it as specialchars then make sure that the database collation including all fields and tables allow the charset of your language (i.e. latin_swedish_ci or wateva it is) and ofcourse make sure the charset required is set in the head tags of the page in the stdhead() function
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