Hi!

i have a small 'interesting' issue,
there are users from several countries, that uses their own languages when registering to my site & filling the registration form. the problem is that their details somehow tranlated into some html code/ascii code or whatever [i attached a screenshot from the country row in the DB for example] & when a user enter a country name into the search box [to find users under that country], nothing is found... [you have to enter this code if you want to find it...]hmmmm

This is not MySQL problem per se. That particular entry is in unicode but your application doesn't write raw unicode to database but converts them to HTML representation in style of &#DDDD; That part in your screenshot is actually: שלו

You either should store raw unicode in database or convert search string same way as initial input. MySQL itself doesn't have problems with either storing or searching in unicode.