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i use utf-8 in my site and install xcgal from 1 year ago and works fine
for utf-8 setting u must only change langauage/YOUR_LANG/global.php file:
//%%%%% LANGUAGE SPECIFIC SETTINGS %%%%%
define('_CHARSET', 'utf-8');
define('_LANGCODE', '**'); // 2 character for your lang. e.g: fa for persian
// change 0 to 1 if this language is a multi-bytes language
define("XOOPS_USE_MULTIBYTES", "1");
and save all YOUR_LANG/*.* files in utf-8 charset
notice:
dont touch any other filesnotice 2: check all lang files with a php editor after change charset to utf-8 and remove "" characters