This is probably the most elegant way to do it.
Right in the PDO constructor call, but avoiding the buggy charset option (as mentioned above):
$connect = new PDO(
"mysql:host=$host;dbname=$db",
$user,
$pass,
array(
PDO::ATTR_ERRMODE => PDO::ERRMODE_EXCEPTION,
PDO::MYSQL_ATTR_INIT_COMMAND => "SET NAMES utf8"
)
);
Works great for me.