Like I said, I checked the server headings, and they're being sent out as UTF-8.
Also, I don't want to encode characters in HTML. The goal is to use UTF-8, a universal character set, so that I don't have to encode characters. I'm lucky enough to use English, so there aren't too many occasions where I have to use accented characters, but if I were Icelandic, my code would quickly become unreadable if I had to encode every single non-standard letter form.
I seem to have solved the problem, though it feels a bit dirty. The text file is encoded as Cp1252 in Eclipse, and when sent over the server, the special characters hold true. I'm not sure why a single UTF-8 encoding gets choked up while a dual encoding appears fine, but it's working for me now.
If anyone can provide further insight into this bizarre behind-the-scenes world, I would surely appreciate it.