Droid Edit supports multiple character encoding. To create a new document with a different character encoding than the default, long press the new file button.You can make this behavior the default in the preference screen. Long pressing the save document button allows you to save a document with a different filename.
Support for SFTP is available for paid version but is still in its early stage. DroidEdit is specially useful for new generation android tablets with external keyboards like the Asus Transformer.