in the WA_UniversalEmail/WAUE_confirm_1.php file, find the following line:
$WA_MailObject = WAUE_Definition("".($WAGLOBAL_Email_Server) ."","25","","","","");
and change it to:
[php]
$WA_MailObject = WAUE_Definition("".($WAGLOBAL_Email_Server) ."","25","","","","UTF-8");
[php]