Rails 3 & FasterCSV

I'm using FasterCSV to upload some csv files and create some records
based off the data in the CSV files. I'm pretty sure the problem is a
character encoding issue because the CSV is full of French and German
words. If I remove all the accents off the letters, then it uploads
fine, otherwise it just throws a FasterCSV::MalformedCSVError.

jeremy-woertinks-imac:winovations jeremywoertink$ file -I
/Users/jeremywoertink/Downloads/example.csv: text/plain;

I'm using
jeremy-woertinks-imac:winovations jeremywoertink$ ruby -v
ruby 1.8.7 (2010-08-16 patchlevel 302) [i686-darwin9.8.0]
gem 'rails', '3.0.1'
gem 'fastercsv', '1.5.3'

Is there a way to set the default encoding for FasterCSV? I looked
through the docs and didn't see it, and most my google searches turned
up people wanting the encoding to be UTF-8, but I don't think that's
what I should be using.

Any ideas?