Please HELP ME! Char Problem

Hello everybody !!!
2 days ago I downloaded source of Dynamic Gallery from Stringy.
This is amazing slide-show gallery, really !!
But the problem is that I am from Slovenia (Europe) and our language uses character (š, č, ž)
So I can not type title and body in my language.
Now it is second day that I spend by solving my problems with (ščž) character and so far I have found example with XML that works with my character, but I can’t find where is the difference (AS) beetwen stringys example http://www.germinal.ws/allfiles.rar and this http://www.germinal.ws/XML.rar. This second one is very basic example but works with my character.
I have changed font to Arial for body and title (symbol4), because this font is familliar with our language but still doesn’t work…
I also change encoding to UTF-8…

I don’t know, maybe I will have to make Sql and PHP example for this, but my knowledge about scripting is not good enough !!
Please can anybody help me or give me some interesting advice ???

Thank you in advance
Marko