later you may see

mysql gem is in the process of being fixed. But for those experiencing deployment nightmares where suddenly switching the db makes all hell break loose.

Short story:
mysql gem drop in fix for rails app

and

Set your language environment variable before kicking off your app, or set it in anyway you like.

Ruby 1.9.1 encoding issues

Worked in Windows / Ruby 1.9.1 and Centos 5.4 / Ruby 1.9,1