Fix ``blogofile blog posts list`` UnicodeEncodeError (in python 2)

Under python 2 (2.6, in particular) the ``blogofile blog post list`` fails with a ``UnicodeEncodeError`` .  (This is with the stock blog site template.)

This fixes that, at least for me.  Also included is a test case which excercises the problem.

(I have tried not to break things for py3.2/3.3, but have not actually tested that.)