I have the same problem only with comments (news are displayed correctly), it looks like
Äćšđž
A few days ago I've upgraded from 1.4.6 to 2.0.2 and this is the only problem I have with the new version. This is acctually my second try to upgrade and configure things, first time I had other problems, but not this one. Both times on the same site.
I hope, there is a solution for this problem and I don't have to try once more all from beginning.
In Settings : on my webpage and in CN : UTF-8
In General settings in CN I've tried all combinations: disable/enable Convert UTF8 symbols for comments, disable/enable pop up for comments etc, but it looks allways like on my image above.
Grateful for any help...