Multibyte string search from non-binary column is not case insensitive

[argo võigemast]

Problem: String search from VARCHAR column is case-insensitive only with single-byte symbols. If search string contains multibyte symbol like 'Ä', then search with 'ä' wont return records with 'Ä'. What collations would allow case-insensitive multibyte string search in this case?

MySQL ver 5.0.51a
Website charset UTF-8
MySQL charset utf8
MySQL connection collation utf8_unicode_ci
MySQL table and column collations tested with utf8_unicode_ci and latin1_swedish_ci.

http://dev.mysql.com/doc/refman/5.0/en/case-sensitivity.html :
.... nonbinary string comparisons are case insensitive by default.