Putty defaults to a translation encoding of ISO-8859-1 where as Ubuntu sends out UTF-8 encoding.
Click on your server in the Load, save or delete a stored session window. Then click on the Load button.
Next, in the Category panel on the left click on:
Window -> Translation
Change the drop down under “Received data assumed to be in which character set” to UTF-8.
Once you do that then click on Session in the top of the Category panel and then click on save in the stored sessions area.
I am not saying this is the correct fix. I am just telling you all what fixed it for me without having to do any crazy stuff to the server.
Cheers!