I did something similar to this and found that I encountered fewer problems if I left the language pack as it was (i.e. I did not change the en language pack to unicode) but changed the config.php to force unicode:
// This setting will put Moodle in Unicode mode. It's very new and
// most likely doesn't work yet. THIS IS FOR DEVELOPERS ONLY, IT IS
// NOT RECOMMENDED FOR PRODUCTION SITES
// $CFG->unicode = true;
As you can see from the above comments, it is probably best to try this out quite extensively on a site that is not live before going live with it. You can see the results on my site at http://www.horsefrog.com
Languages
charset not being set on enrol students/teachers pages
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