Information About my Redmine Environment

We upgraded from 1.4.1 to 2.0.0 and running on IIS

Environment:
Redmine version 2.0.0.stable.9706
Ruby version 1.9.3 (i386-mingw32)
Rails version 3.2.3
Environment production
Database adapter MySQL
Redmine plugins:
no plugin installed
--------------------------------------------------------------------------------
Can't reproduce on trunk / PostgreSQL + MRI 1.9.3.

Make me think of #8416.

--------------------------------------------------------------------------------
Could very well be related to the use of IIS.
--------------------------------------------------------------------------------
#8416 is the issue with single quotes but not the microsoft quotes
--------------------------------------------------------------------------------
Could you please check your Redmine and IIS logs?
--------------------------------------------------------------------------------
+From Redmine logs+

Started GET "/redmine/issues/1752" for 10.1.217.244 at 2012-05-24 09:44:59 -0700
Processing by IssuesController#show as HTML
Parameters: {"id"=>"1752"}
Rendered issues/_action_menu.html.erb (0.0ms)
Rendered issue_relations/_form.html.erb (0.0ms)
Rendered issues/_relations.html.erb (0.0ms)
Rendered issues/_history.html.erb (0.0ms)
Rendered issues/show.html.erb within layouts/base (31.2ms)
Completed 500 Internal Server Error in 187ms

ActionView::Template::Error (incompatible character encodings: UTF-8 and ASCII-8BIT):
114: <% if @journals.present? %>
115: <div id="history">
116: <h3><%=l(:label_history)%></h3>
117: <%= render :partial => 'history', :locals => { :issue => @issue, :journals => @journals } %>
118: </div>
119: <% end %>
120:
app/views/issues/show.html.erb:117:in `_app_views_issues_show_html_erb__669033008_44865480'
app/controllers/issues_controller.rb:118:in `block (2 levels) in show'
app/controllers/issues_controller.rb:115:in `show'

--------------------------------------------------------------------------------
Are you using the mysql2 adapter?
--------------------------------------------------------------------------------
Oh, I can see that you're not using mysql2 in the info you provided.
Please change your database adapter to mysql2 (instead of mysql) in your config/database.yml.
--------------------------------------------------------------------------------
Yes I have mysql2 in my yml file. I have production and development adapter as mysql2
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
It is showing the same error in the redmine log file though I have mysql2 in the database adapter
--------------------------------------------------------------------------------
Is there anything to do with libMySQL.dll in C:\Ruby19\bin?
--------------------------------------------------------------------------------
In the Gem list it is showing both mysql and mysql2
--------------------------------------------------------------------------------