Unfortunately for me, I have an enormous number of text files that use two basic encodings: Latin-1 and UTF-8. Which uses which is hard to say, since they are all scattered together and hard to separate.
In DTP I have the import text encoding set to “Automatic”. However, when I drag in a plain text file that’s encoded in either Latin-1 or UTF-8, I see garbage characters in the resulting entry instead of accents. The particular garbage characters used depends on what the text file’s encoding really was.
You can test this with the following file:
Once that fails ot import, try converting it to UTF-8 (I used TextMate), and then drag-and-drop again. Still it doesn’t work! I thought that by setting the import encoding to “Automatic”, DTP would Do The Right Thing, no matter what the input encoding was.
As things stand, the only way I’ve found to preserve accents is to manually convert the text file to UTF-8 outside of DTP, and then to change my import text encoding to be only UTF-8, and then to import the file.