#1 unable to paste or read ° properly

[ianaré]

Installed from rpm package downloaded from SF, running
on fedora core 5/gnome.
When I try to paste a special character from 'character
map', I get a new line and the red underline. If I
close out, open with the gnome text editor, paste my
character and re-open the file the text looks very
weird, like some characters are overlayed on top of
each other - take a look at the screenshot, on the
lower right corner.
The character I'm trying to use is: '°' (degree sign),
the file i'm working on is encoded in utf-8.

[ianaré]