No matter what I do, if I specify a MySQL db, configured with charset set as UTF-8, I get the following:

Cause:
org.apache.velocity.exception.MethodInvocationException: Invocation of method 'isDemonstrationContentInstalled' in class com.atlassian.confluence.setup.DefaultSetupPersister threw exception class org.springframework.jdbc.UncategorizedSQLException : (Hibernate operation): encountered SQLException [Illegal mix of collations (latin1_swedish_ci,IMPLICIT) and (utf8_general_ci,COERCIBLE) for operation '=']; nested exception is java.sql.SQLException: Illegal mix of collations (latin1_swedish_ci,IMPLICIT) and (utf8_general_ci,COERCIBLE) for operation '='

Attached is the full error page.