Here is an example for your review.
This is a navigation element that works incredibly well with Dynamic Drop Downs.
To see the issue, use the following steps:
Choose Brands from the first list. Then scroll down in the second select menu item and you will see the issue with the word CÎROC. The circumflex renders as a question mark. The database is using the proper character set and can render out as HTML without issue. But when placed into the dynamic dropdown array, it freaks out.