Collation for new sites is not utf8

I have NBT's and when I create a new site the collation in the db is changed from utf8 to latin1_swedish_ci so I get some weird characters where ever quotes are used.

I don't think I have seen that before and its not in the new blog template plugin but how can convert them all to utf8?

Not sure what I did but the 1st two sites I created were utf8_general_ci ?

I have this in wp-conf:

/** Database Charset to use in creating database tables. */
define('DB_CHARSET', 'utf8');

/** The Database Collate type. Don't change this if in doubt. */
define('DB_COLLATE', '');

Also how to get all my newly generated sites to use utf8?
thanks!