Python e MySQL: Unicode e codificação

Estou analisando dados json e tentando armazenar alguns dos dados json no banco de dados Mysql. No momento, estou recebendo o seguinte erro unicode. Minha pergunta é como devo lidar com iss

Devo lidar com isso do lado do banco de dados e, em caso afirmativo, como posso modificar minha tabela para fazer issDevo lidar com isso do lado python?

Aqui está minha estrutura de tabelas

CREATE TABLE yahoo_questions (
   question_id varchar(40) NOT NULL, 
   question_subj varbinary(255), 
   question_content varbinary(255),
   question_userId varchar(40) NOT NULL,
   question_timestamp varchar(40),
   category_id varbinary(20) NOT NULL,
   category_name varchar(40) NOT NULL,
   choosen_answer varbinary(255),
   choosen_userId varchar(40),
   choosen_usernick varchar(40),
   choosen_ans_timestamp varchar(40),
   UNIQUE (question_id)
);

Erro Ao inserir via código python:

Traceback (most recent call last):
  File "YahooQueryData.py", line 78, in <module>
    +"VALUES (%s, %s, %s, %s, %s, %s, %s, %s, %s, %s, %s)", (row[2], row[5], row[6], quserId, questionTime, categoryId, categoryName, qChosenAnswer, choosenUserId, choosenNickName, choosenTimeStamp))
  File "/opt/local/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/MySQLdb/cursors.py", line 159, in execute
    query = query % db.literal(args)
  File "/opt/local/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/MySQLdb/connections.py", line 264, in literal
    return self.escape(o, self.encoders)
  File "/opt/local/Library/Frameworks/Python.framework/Versions/2.6/lib/python2.6/site-packages/MySQLdb/connections.py", line 202, in unicode_literal
    return db.literal(u.encode(unicode_literal.charset))
UnicodeEncodeError: 'latin-1' codec can't encode characters in position 204-230: ordinal not in range(256)

Segmento de código Python:

    #pushing user id to the url to get full json stack
    urlobject = urllib.urlopen(base_url.format(row[2]))
    qnadatajson = urlobject.read()
    data = json.loads(qnadatajson)
cur.execute("INSERT INTO yahoo_questions (question_id, question_subj, question_content, question_userId, question_timestamp,"
            +"category_id, category_name, choosen_answer, choosen_userId, choosen_usernick, choosen_ans_timestamp)"
            +"VALUES (%s, %s, %s, %s, %s, %s, %s, %s, %s, %s, %s)", (row[2], row[5], row[6], quserId, questionTime, categoryId, categoryName, qChosenAnswer, choosenUserId, choosenNickName, choosenTimeStamp))

json Estrutura

questions: [
{
Id: "20111201185322AA5HTDc",
Subject: "what are the new pokemon call?",
Content: "I used to know them I stop at dialga and palkia version and I heard there's new ones what's it call
",
Date: "2011-12-01 18:53:22",
Timestamp: "1322794402",

O que eu fiz antes de executar a consulta, execute o seguinte emmysql SET character_set_client = utf8

E é assim que as variáveis mysql se parecem:

mysql> SHOW variables LIKE '%character_set%';
+--------------------------+--------------------------------------------------------+
| Variable_name            | Value                                                  |
+--------------------------+--------------------------------------------------------+
| character_set_client     | utf8                                                   |
| character_set_connection | utf8                                                   |
| character_set_database   | latin1                                                 |
| character_set_filesystem | binary                                                 |
| character_set_results    | utf8                                                   |
| character_set_server     | latin1                                                 |
| character_set_system     | utf8                                                   |
| character_sets_dir       | /usr/local/mysql-5.5.10-osx10.6-x86_64/share/charsets/ |
+--------------------------+--------------------------------------------------------+
8 rows in set (0.00 sec)

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