I have been setting the encodings (for Turkish encoding) for my Asp.Net sites as follows, which is a standard way and working perfectly:
<globalization requestEncoding="windows-1254" responseEncoding="windows-1254" fileEncoding="windows-1254" />
But when I started using Ajax Asp.Net 1.0 with the same settings, I got scrambled characters for Turkish characters. This seems to be a bug.
I posted the problem to Asp.Net forums and stmarti comes with a workaround for it that saves a lot of work of saving every page of the site with UTF-8 encoding.(http://forums.asp.net/p/1115099/1726111.aspx#1726111)
Here is the workaround setting:
<globalization requestEncoding="utf-8" responseEncoding="utf-8" fileEncoding="windows-1254" responseHeaderEncoding="windows-1254" />
You can change the windows-1254 to any encoding that will work for you.