How to handle non-ascii characters in templates?

[Petter Reinholdtsen <pere@hungry.com>]

[Denis Barbier]
>>   Change 'Bokmal' to 'Bokmaal'.
> 
> Maybe we could also add an en.po file to provide ISO-8859-1
> characters?

That is one option, but I believe it is better to specify that
templates should use UTF-8.  I'm not sure how much must change to make
it happen.