The problem is, that your string is not encoded in latin1 (aka iso-8859-1). Your string is encoded in the RFC 2045 representation of an latin1 string.
You will have to write a decoder that recreates a valid latin1 character array from this representation, which you can then feed to QString::fromLatin1.
As inspiration on how to do that here the result of a search via google codesearch: ;-)
rfc2047.c from mutt seems to contain a decoding function.
(If you let yourself inspire by other code: Mind the license...mmmmKay?)
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