I setup my Chinese Blog using MT with zh_TW encoding. It is not actually zh_TW encode, but utf-8 (Unicode) encoding of zh_TW language (Traditional Chinese). MT Localization team did a good work (also help from Jedi). All I need to do is to download the zh_tw.utf8.pm archive and the graphs/icons. Put them into proper places (zh_tw.utf8.pm at $MT/lib/MT/L10N, lang-zh-tw graphics folder put under images). Then create an user whose language preference is zh_tw. It's done.
It suppose should be done as everything works well, from displaying proper language and icons, to posting your articles in utf-8 encoding. But the text messed up after you posted! I have tried setting browser encoding to utf-8, zh_TW. All didn't work on posting. Or it might work after you first posted, displayed properly while you viewing your site. But the text display while you edit the post, is scrambled. The utf-8 charset was manually changed in main index template instead of setting MTCharset in mt.cfg. I use the same MT system to manage 2 blogs in different language, that might be the cause.
I am wondering why not trying other software. b2 looks pretty nice. I've installed it in my Windows and trying it out. It is written in PHP, which means it's more hackable to me (I don't know Perl).
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