SQLSTATE[HY000]: General error: 1366
What is the origin of your CSV file? Are you sure that it is properly encoded using UTF-8? This error is coming from an issue with the database handler trying to process non-UTF8 characters (see: http://drupal.org/node/1140194). 

The particular character it is having problems according to your error above is the "&nsbp;" character or 0xC2 and 0xA0, you'' want to convert your file to UTF-8 or alternatively if you have control over what ever is generating your export, strip it out using php following the advice here