PHPMailer using SMTP screws up body charset!

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Hi there guys,

I've been using PHPmailer for a while, and now I'm using it with SMTP
enabled, my problem is:

Although I do define my charset as iso-8859-1, my body message will
appear with charset screwed up, while SMTP was disabled I had no
problem with this.

Does any one have a clue what the problem is?

Thanks in advance.