Basically I think that SQLyog inserts correctly and PHP does not!
SQLyog shows data as they are stored in the database!
refer to those two discussions:
http://www.webyog.com/forums//index.php?showtopic=3284
http://www.webyog.com/forums//index.php?showtopic=3204
1)
Please dump a small table with SQLyog 'export', zip and attach here!
Once opened in NOTEPAD it will be easy to see if data are really stored in the database as utf8!
2)
Please also answer:
MySQL version? 5.0.33
SQLyog version? 5.19