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The culprit seems to be Applescript's built-in read function, which still appears to be reading text as MacRoman.

I have now rewritten ReadTextFile(), dropping read in favour of a very simple use of cat in the shell:

Code:
on ReadTextFile(fFile)
	do shell script "cat " & quoted form of (POSIX path of fFile)
end ReadTextFile
On my system this fixes the output for the umlaut (and for Chinese characters too).

I have updated the file for download.

Last edited by RobTrew; 2012-07-17 at 08:01 PM..