Foreign characters conversion fails in convert

Ok, new deal. Since I guess I lied a bit about the "vanilla" (although it is vanilla phpBB CODE, but the db has plenty of mods still in it) phpBB thing in the last reports, I changed things around.
Installed a COMPLETELY vanilla phpBB2.0.22 in forum/ and made one post to it, containing "å ä ö" etc.
Install phpBB3 in /forum2 and in same database with different prefixed.

Note: I used the very newest CVS, the with the changes to the converter that was checked-in just minutes ago (i.e. version 1.1 of convert_phpbb20.php etc).

Conversion now works without any PHP notices, errors or anything. Sweet!

But. Once done, the post looks like this: "ÅÄÄÖÖ åääälllöööö atralåöl"
The post TITLE, which also contained å ä ö, had converted perfect though. Weird.

1. Apache 2.2.3
2. MySQL 5.0.27
3. PHP 5.2.0