I have found in my test today that it does usually need to
update the language pluing in the joomla/community_module/plugin_manager and to select in the
Joomla/Extention/Language_Manager the language selection it will use.
I think it will be no problem with joomla 1.0.1x because it works with iso-8859-1 but I have found out some with 1.5.7 that works in utf-8 coding.
I hope it can help you.
Manuel Tovar