Problem:
Custom-built picklists are not displaying words/language properly. Foreign characters, special characters, and/or accents are completely wrong. For example, "Andrée" displays as "Andr�e".
Fix:
When you are editing and saving your custom-built picklists in Notepad, when you save the file, do a File, Save As and change the Encoding from "ANSI" to "UNICODE".