MySQL 5.5, all you need is:
[mysqld] character_set_client=utf8 character_set_server=utf8 collation_server=utf8_unicode_ci
collation_server
is optional.
mysql> show variables like 'char%'; +--------------------------+----------------------------+ | Variable_name | Value | +--------------------------+----------------------------+ | character_set_client | utf8 | | character_set_connection | utf8 | | character_set_database | utf8 | | character_set_filesystem | binary | | character_set_results | utf8 | | character_set_server | utf8 | | character_set_system | utf8 | | character_sets_dir | /usr/share/mysql/charsets/ | +--------------------------+----------------------------+ 8 rows in set (0.00 sec)