Is that possible to include this function that will be able to "auto convert" our current char set to UTF-8 without looking for some way of fixing? As IPB is working great on UTF-8 it's recommended, but for example if we had a forum that was working on windows-1255 encoding and changed the forum's char set to UTF-8 (through Environment settings) this will display the Topics / Posts / other content in Gibberish or in Question marks / Squares.

There should be an automatic tool that can do this "hard work" for us by clicking a simple button. Instead of logged into our phpMyAdmin and start changing our tables character set manually.

There is. :lol:
http://community.invisionpower.com/files/file/2929-character-set-converter/

Not as an exernal app. There should be a way to do it through upgrader script. (installation has no problem, only when upgrading..)