OK, it's workign when I go to some sites. For example, the site at:
http://www.china-embassy.org/eng/24789.html works fine.
Probably because it has the META tags? Or some other indicator of char set. But the page at
http://www.cybernothing.org/pub/abuse/relay/cn.simplified
Doesn't work in KM, although it does in IE. I'm guessing that's because it's a raw text file that consists largely of hi-bit characters while the first document is an HTML document with coded tags for all the Chinese (新华社华盛顿, etc).
Why can IE display the second page at cybernothing correctly but KM can't?