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Subject line in outgoing email not correctly encoded

My subject had a pound sign £ in it. The mail I received from the system had a capital A circumflex before the pound sign which indicates to me that the text was included as UTF-8, but the encoding claimed by the subject line is ISO-8859-1 (by using that encoding, you are also excluding many characters people would want to use).

The solution is:
edit the include/class.email.php and insert this line:
'head_charset' => 'utf-8',
between:
'html_encoding' => 'base64',
'html_charset' => 'utf-8',

(result:
'html_encoding' => 'base64',
'head_charset' => 'utf-8',
'html_charset' => 'utf-8',
)

it's about the line 178.

thanks ptibor I faced the same problem and now your solution is working fine with me