Search with utf-8 characters

A user on my board posted asking about this, it also happens on my board and area51 so I am assuming this is a phpBB issue,

Austin:

I've been using Fulltext mysql as search method/indexing. Tonight I switched to Fulltext native. Everything works fine, there's just an issue with our Swedish letters. Å Ä Ö

If I write in the search box the work "sök" (=search in En.) I click on the button and it reforms to "soek"

Title of the search page says: "Search found 65 matches:: soek"
There are some 4-5 pages with results. In the first page the word "sök" is highlighted though, but going on to next page they word "sök" is not longer highlight since I guess it's looking for "soek"

Same thing on this site: Searching for "sök" gave me (should be different after this post):
"No posts were found because the word soek is not contained in any post."

Is there a fix for this? or perhaps I should stick to the mysql search? That one does not transform åäö to oe, ae, etc...