I am creating a greek document using package babel. The main problem is that the contents the pdf viewer creates are not displayed in greek, but in "greeklish".
Okular

Adobe Reader

At first I thought that it was Okular's issue but I get the same behaviour on adobe reader and adobe acrobat, so I don't think that has to do with the reader.
My TeXLive version is TeX 3.14159265 and I am using pdfLatex.
A simple code is
\documentclass[11pt,a4paper]{book}
\usepackage[english,greek]{babel}
%\usepackage[utf8]{inputenc}
\usepackage[iso-8859-7]{inputenc}
\usepackage{kerkis}
\usepackage[pdfencoding=auto]{hyperref}
%\usepackage[unicode]{hyperref}
\usepackage{bookmark}
\begin{document}
\tableofcontents
\chapter{Περίληψη}
% \begin{otherlanguage}{greek}
% \addchap{\texorpdfstring{Per'ilhyh}{Περίληψη}}
% Per'ilhyh
% \end{otherlanguage}
\section{Πρώτη Ενότητα}
\section{Δεύτερη Ενότητα}
\chapter{Δεύτερο Κεφάλαιο}
\section{Πρώτη Ενότητα}
\section{Δεύτερη Ενότητα}
\chapter{Τρίτο Κεφάλαιο}
\section{Πρώτη Ενότητα}
\section{Δεύτερη Ενότητα}
\end{document}
I've tried to use options unicode or pdfencoding=auto to the hyperref package, but without any luck. I've also changed the encoding from iso-8859-7 to utf8 but I get an error
! Argument of \UTFviii@three@octets has an extra }. <inserted text> \par l.13 \chapter{��������} Runaway argument?
Any idea why is this happening and how to fix it?
\chapter[\texorpdfstring{Πρώτο κεφάλαιο}{proto kefalaio}]{Πρώτο κεφάλαιο}– Johannes_B Sep 12 '14 at 09:49hyperrefof course. – Johannes_B Sep 12 '14 at 09:56Pr'wto Kef'alaioI now haveproto kefalaiowhile I wantΠρώτο Κεφάλαιο. You are right abouthyperef. I've edited my question. – Thanos Sep 12 '14 at 09:57\usepackage[unicode]{hyperref}, I get the right thing. – egreg Sep 12 '14 at 10:19texdoc kerkis. Someone should inform the maintainer about this. – Johannes_B Sep 12 '14 at 10:22kerkis.stycompletely. There are other (better?) fonts out there, especially in the open type section. – Johannes_B Sep 12 '14 at 10:25\ProvidesFile{kerkis.sty}[2000/02/25 v1.5 Packagekerkis.sty']` Even worse. That's why i recommended to drop its usage. – Johannes_B Sep 12 '14 at 10:32kerkis.sty. – egreg Sep 12 '14 at 10:34utf8alongunicodeoption inhyperrefworked. What I was doing wrong was using another encoding in my editor! Do you think that I have to give an answer emphasizing that? – Thanos Sep 12 '14 at 16:40inputenc. – egreg Sep 12 '14 at 16:52