I faced a problem with locales in terminal on Mac OS X Lion. Midnight Commander didn’t want to display cyrillic symbols in filenames, on remote Ubuntu I’ve been getting messages like “warning: setlocale: LC_CTYPE: cannot change locale (UTF-8)”. The solution is fairly simple – add these two lines to ~/.bash_profile (by default is seems to be missing, so create the file):
# Setting for the new UTF-8 terminal support in Lion export LC_CTYPE=en_US.UTF-8 export LC_ALL=en_US.UTF-8
Thanks to Allen Bargi’s answer!
P.S.: Mountain Lion has the same issue and it gets solved in the same way.