Hi, I just tried in 2.0.3 with the same name (created a new contact entry with that name since I didn't have it in my addressbook any more), and can reproduce exactly the same (or at least very similar) behaviour. My default character encoding is set to UTF-8 (in both mail and compose preferences).
However, I just noticed that the bug wasn't as easily reproduced as I thought. Try this: Create a contact TÃst WÃÄkonÃvà <[EMAIL PROTECTED]> then write a new email to him, which you save as draft. In the email, the name is only saved as To: =?ISO-8859-1?Q?T=E9st_W=E1?= <[EMAIL PROTECTED]> which Evolution itself displays as To: TÃst Wà <[EMAIL PROTECTED]> Obvious now. johannes