help with TexShop

[James E. Bailey]

Hello, I was wondering if anyone here uses TexShop with the lilypond plugin. So 
far it's working well, but I'm having some issues with the UTF-8. Namely, my 
umlauts and ß show up as ASCII code rather than the characters. TexShop 
displays the special characters in the input file correctly, but if I open my 
input file in a texteditor (like nano), I see the ASCII code there. It seems to 
me that there's some sort of thing between TexShop and lilypond that I just 
don't know about.

That's the specific of my question, but any help on where to find more 
documentation about TexShop, lilypond and UTF-8 would be appreciated. 
Incidentally, I can get TexShop to render umlauts just fine in LaTeX mode with 
\"u, and as I understand it, one of the plugins allows me to use LaTeX mode to 
parse lilypond code with an option at the beginning of my lilypond code, I 
don't recall it at the top of my head, but I haven't attempted that yet, since 
I wanted to get things sorted out one at a time.