to answer my own question ...
Seems the database update script is not converting the columns to UTF-8 correctly. Either that or there's some weird data in my tables. Fields were ending up padded with null characters (\0), this sorted out the issue -
mysql -p use mya2billing; update cc_sip_buddies set nat = replace(nat,'\0',''); update cc_sip_buddies set DEFAULTip = replace(DEFAULTip,'\0',''); update cc_sip_buddies set ipaddr = replace(ipaddr,'\0',''); update cc_sip_buddies set host = replace(host,'\0','');
As always - back up your data beforehand!
As for the e-mail templates it seems like it does it on the demo system here also, so it's either by design, and the mailer should be converting them back, or it's a bug.
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