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I suspect that you're probably using Cold Fusion MX or higher? We're still using CF 5 because of a host of problems with character encoding with MX.
Oh, and are you using standard HTML select tags or CFSELECT?
[edited by: LifeinAsia at 8:22 pm (utc) on July 15, 2008]
As far as fixing it... Try downloading & installing an evaluation version of 7 or 8 and see if the page renders correctly. If so, upgrading may be your best bet. If that still doesn't work, I don't have any other suggestions, unless you wanted to downgrade to 5 (but then other aspects of your site might not work).
What baffles me is that, with utf-8 set in the charset of the meta tag, it'll work in Firefox and majority of the other browsers with the exception of IE6.0+. I can set the charset to gb2312 and it still won't work under IE. This is displaying under a ColdFusion Web page. So, let's say there's an issue with CF MX 6.1 encoding International languages like Chinese. However, it'll appear fine in Firefox, but not IE. Wouldn't you say, there's an issue with IE as well?