Well, this doesn't seem to be an AOLServer issue. I (and as I recall, Robert too) have managed to get Tcl8.3 running with UTF/ISO mix of encodings - though having a working ADP support would be nice (I can't find a straightforward way to use 8859-2 in ADP-s. At present I use ad_parse_template, and I have thought of a filter that will do the same - return the headers with an appropriate ns_startcontent and parse the ADP file).
This brings a new question: I have noticed, that ad_parse_template used the fancy parser when invoked with -file, while the standard (adp) one while using -string?
I am downloading the bundled version of PG7.1RC2 to give it a test on my PLD-linux box (perhaps it was the issue of something broken with RH or Debian)