Mysql collations error

Hello,

I am having this mysql error in my ruby on rails application.

ActiveRecord::StatementInvalid occurred in

event#lg:
Mysql::Error: Illegal mix of collations
(latin1_swedish_ci,IMPLICIT) and (utf8_general_ci,COERCIBLE) for
operation ‘=’: select * from locations where country = ‘HU’ and
geo_state = ‘08’ and city = ‘Pázmánd’ and zip = ‘(null)’ and lat =
‘47.283’ and lng = ‘18.666’ and metrocode = ‘0’ and areacode = ‘0’
and isp = ‘UPC Magyarorszag Kft.’ and organization = ‘UPC
Magyarorszag Kft.’ limit 1

mysql collation variables are set to.

collation_connection
latin1_swedish_ci
collation_database
utf8_general_ci
collation_server utf8_general_ci

mysql character set are set to.

character_set_client
latin1
character_set_connection
latin1
character_set_database
utf8
character_set_filesystem
binary
character_set_results
latin1
character_set_server
utf8
character_set_system
utf8
character_sets_dir /usr/share/mysql/charsets/

Any suggestion is welcomed

I am using mysql version 5.0.22