[H-GEN] UTF-8 vs ISO-8859-1

[Troy Piggins]

On most linux distros I've installed, if I enter my location as
Brisbane, Australia during the install process it automatically
seems to set locale to UTF-8.

$ locale
LANG=en_AU.UTF-8
LANGUAGE=en_AU:en
LC_CTYPE="en_AU.UTF-8"
LC_NUMERIC="en_AU.UTF-8"
LC_TIME="en_AU.UTF-8"
LC_COLLATE="en_AU.UTF-8"
LC_MONETARY="en_AU.UTF-8"
LC_MESSAGES="en_AU.UTF-8"
LC_PAPER="en_AU.UTF-8"
LC_NAME="en_AU.UTF-8"
LC_ADDRESS="en_AU.UTF-8"
LC_TELEPHONE="en_AU.UTF-8"
LC_MEASUREMENT="en_AU.UTF-8"
LC_IDENTIFICATION="en_AU.UTF-8"
LC_ALL=

I am not sure of /all/ of the implications of this, I think most of
the applications I use from the terminal (mutt, slrn, elinks, 
midnight-commander etc) all seemed to display characters like
umlats (?spelling) correctly/better if locale was ISO-8859-1.

Is this correct?  Or was it a TERM type setting issue?

What /should/ I be using?

-- 
Troy Piggins
  ,-o   Ubuntu v6.06 (Dapper Drake): kernel 2.6.15-25-server, 
 o   )  postfix 2.2.10, procmail 3.22, mutt 1.5.11i,
  `-o   slrn 0.9.8.1/rt (score_color patch), vim 7.0