I suggest you do as mmccarn suggests as changing the default charachter set will undoubtedly influence webmail, which also uses MySQL.
The easiest solution is to do something like this:
mysqldump --opt --database databasename > /tmp/wordpress-org.sql
sed -e 's/SET NAMES utf8/SET NAMES latin1/' /tmp/wordpress-org.sql > /tmp/wordpress-new.sql
mysqladmin drop databasename
mysqladmin create databasename
mysql -e 'ALTER DATABASE databasename DEFAULT CHARACTER SET latin1'
mysql databasename < /tmp/wordpress-new.sql
Make sure to replace every occurence of databasename with the correct name of your database.