Wehenever I create a new file, PHPed defaults the file to WINDOWS-1252 encoding despite the fact that in the IDE Settings tab AND the project properties I have selected UTF-8 as default file encoding.
Can anybody tell me what's wrong and what can be done to fix this problem? Thanks!

I believe, that Workspace also has default encoding. And when you opened file from the outside of phpEd (i.e. from your file manager), phpEd openes itself with new workspace created with system default encoding. Since I believe, that phpEd does not have native recognition of file encoding, this would result in the situation you describe.

Try this as workaround:

- Open %PROGRAMFILES%\nusphere\phped\templates\Php File.php
- Change file encoding from WINDOWS-1252 to UTF-8 (just click on encoding name in right part of status bar and choose right one)
- Save file
- Close it

Also a non-invasive workaround is to first open phpEd with a workspace with UTF-8 encoding (could be any of you phpEd's projects). Than you just drag and drop desired file to phpEd and it open using the UTF-8 encoding of the workspace.