To set an encoding for documents, use the Default Encoding pop-up menu.
Default Encoding specifies the encoding to be used when a new page is created, as well as when a document is opened that does not specify any encoding. For more information, see Understanding document encoding.
If you select Unicode (UTF-8) as the document encoding, entity encoding is not necessary because UTF-8 can safely represent all characters. If you select another document encoding, entity encoding may be necessary to represent certain characters. For more information on character entities, see www.w3.org/TR/REC-html40/sgml/entities.html.
If you select Unicode (UTF-8) as a default encoding, select a Unicode Normalization Form.
There are four Unicode Normalization Forms. The most important is Normalization Form C because it's the most common one used in the Character Model for the World Wide Web. Macromedia provides the other three Unicode Normalization Forms for completeness.
In Unicode, there are some characters that are visually similar but can be stored within the document in different ways. For example, "?" (e-umlaut) can be represented as a single character, "e-umlaut," or as two characters, "regular Latin e" + "combining umlaut." A Unicode combining character is one that gets used with the previous character, so the umlaut would appear above the "Latin e." Both forms result in the same visual typography, but what is saved in the file is different for each form.
Normalization is the process of making sure all characters that can be saved in different forms are all saved using the same form. That is, all "?" characters in a document are saved as single "e-umlaut" or as "e" + "combining umlaut," and not as both forms in one document.
For more information on Unicode Normalization and the specific forms that can be used, see the Unicode website at www.unicode.org/reports/tr15.