that could be indeed a problem.
Most windows applications save textfiles with ISO-8859-1 or ANSI encoding, perhaps what the engine needs is a file with UTF-8 encoding(preferably without signature). Have you tried re-saving the file in notepad by selecting UTF-8 encoding?
Or maybe even the other way around, I dont recall how it was exactly right now. In any case, it couldn't hurt to try different file encodings.