I started getting an encoding error whenever I tried to generate my Octopress blog with rake generate. The error message was:

Liquid error: incompatible character encodings: UTF-8 and IBM437

I tried to save all my recently modified files with UTF-8 encoding, but I couldn’t get the error to go away until I found a solution on this blog in Chinese.

Set two environment variables (via Control Panel/System/Advanced System Settings/Environment Variables) as follows:

LC_ALL = en_US.UTF-8
LANG = en_US.UTF-8

Now my blog generates without error.