I wanted to post the solution for this.
I have found that there is a difference in the way the post is getting formatted. There is an extra check to get rid of long strings. So if I were to just press "a" for like 50 times, the forum would put spaces in. I think this is new to ver 7.8 (not sure about 7.7, I don't have it)
Anyways, in the Japanese world, we don't have spaces inbetween words which causes the above function to cause problems like putting spaces where we wouldn't want them, and at times cutting the 2 byte character in half, which makes it unreadable and garbled.
If Borg isn't into making the forum useable for 2byte characters, then no probs, but I think it'll help somebody out there who is running the forum with 2 byte chars.
On another note, I have finally figured out why when the titles are longer then 41 bytes why they get all messed up and make my forum go haywire (it places html code on the end of the title of the topic.. very strange) That also is because the title is getting trimmed halfway through the 2 byte character. This is crummy, so the only way to fix it is to test whether you have chopped up a 2 byte character and then delete that half a character to clean it up.
Hope this helps somebody out there.