After a new installation of Redhat 6.0 less won't display
latin1 characters correctly, although I chose a latin1
keyboard in setup. Solution is to set env. variable
This is because you are not in a latin1 locale. For instance, if you
set your LANG environment variable to en_US, and then try to view a
file with latin1 characters, you will have no problems.
You are by default in the "C" locale, i.e. ASCII.