Sorry - you didn't specify in your original post that you were trying to read them on the iLiad.
Given that the iLiad does not, regretably, provide the ability to change fonts, I suspect that you are "out of luck". It is a self-evident fact that you aren't going to be able to view Greek characters unless the font which you're using to view the book contains those characters!
UTF8 is the correct setting to use when creating the book, but you do need the appropriate font on the reader to view the resulting book.
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