[OS X TeX] TeXShop 3 and text encoding on Lion - serious problems

[Luis Sequeira]

I am experiencing serious issues with TeXShop and text encodings in Lion. 

My wife sent me a tex file written using the mac roman encoding. I opened it, selecting the encoding, as usual, from the dropdown menu in the open dialog. 
The accented characters don't appear. The file typesets correctly - using \usepackage[applemac]{inputenc} - which confirms that the file itself is not corrupted and is using the right encoding.
Making changes to the file causes havoc, as would be expected - now new accented characters that are input show up correctly in the source but not in the pdf - suggesting that TeXShop is using a different encoding than it is was supposed to.

I then converted the file to utf8 (using Smultron) and replaced applemac by utf8 (\usepackage[utf8]{inputenc}) - and again opened the file from the open dialog, selecting utf8 encoding.
In this encoding the accented characters still did not display correctly, but still the file typeset ok.

Both versions of the file (using macroman or unicode) display and typeset correctly in TeXShop 2 on Leopard.

I think this is a serious bug in TeXShop in Lion (I am using 3.04, but the same problem occurs in 2.29 in Lion). 
Smultron in Lion (although an old version from 2009) has no problem handling the files. TeXShop 2 in Leopard also has no problem. The same flle displays and typesets perfectly in my wife's iBook.

For now this makes working with accented characters (which are abundant in my language, Portuguese) a nuisance. I am reverting to writing stuff like \'a for á for the first time in years.

Luis Sequeira