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It seems to be ok, anyway if u plan to use Unicode, u have to go xoops_root/language/english/global.php and to change latest line from charset-8859-1 to utf-8
Second language have to be created in Unicode, such one of my sites -
http://www.pzcci.org - BiLingual site based on XOOPS 2.0.13, both language files are unicoded, so u can see Bulgarian texts on my site, no matter can u understand them or not, simple with flag choosing.
Some themes for the old XOOPS 2.0 have hard linked to iso8859-1 charset definitions, so u have to check yours and to fix it to utf-8 (remeber to change and XOOPS core language files).
For example, if u're Russian and try with the existing translation to maintain bilingual site this will be unavailable, cos of Windows-1251 limitation.
Texts written in CP1251 will not be displayed in ISO8859-1 and the same and for ISO.
On dev.xoops.org u can get Spanish, Bulgarian and Indian (Gujarati) at the moment translated with Unicode.
Russian and Ukrainian are in state deep sleep :)
Polish, Finish and Swedish (lovely swedish) they never will be released as I can see.
May The Source Be With You!