Encoding Problems UTF-8 or ISO-blahblah

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http://www.linuxquestions.org – Hi, I have some trouble with the encoding. I use UTF-8 most of the time, but sometimes I have encoding problems in X and command-line or other OS. I'm from Germany and I want/need the special chars like ä, ö, ü, etc. But when I rename a file e.g. "öffentlich.doc" (engl. public.doc) my command line can't encode the char "ö" correct. Can anyone explain the encoding scheme in linux and what's the best encoding for me and why my X and command-line uses different encoding schemes? (HowTos)