MySQL doesn't accept cyrillic characters

[xtz]

I am trying to run a CMS (Content Management System), and I've just discovered, that MySQL doesn't wanna insert any cyrillic (1251 encoding) character in any table. For example, when I try to post a phpBB topic in cyrillic, it justs post empty message. If I try to create a forum, which name is in cyrillic, it creates an empty one. Apache displays 1251 fine, php has no problems either. I just can't find out what's the problem with MySQL. Here's a little information about how is MySQL installed on the machine:
biliana ~ # emerge mysql -pv
These are the packages that would be merged, in order:
Calculating dependencies... done!
[ebuild R ] dev-db/mysql-5.0.44-r2 USE="perl -berkdb -big-tables -cluster -debug -embedded -extraengine -latin1 -max-idx-128 -minimal (-selinux) -ssl -static" 0 kB
Total: 1 package (1 reinstall), Size of downloads: 0 kB

And this is from my.cnf:
[mysqld]
character-set-server = cp1251
default-character-set = cp1251

Any ideas of what's wrong?