Strange behaviour with latin character

Hi,

when typing latin character, vim either add a whitespace ("é"->"é ") or
something very different ("à"->"| "). It used to work and have no idea of
have changed.
Any suggestion?

Just in case, below is my .vimrc...

Thanks
Jul

set statusline=%f%m%r%h%w\ [POS=%04l,%04v][%p%%]\ [LEN=%L]
:set laststatus=2
set nocompatible
set autoindent
set smartindent
set expandtab
set tabstop=4
set shiftwidth=4
set showmatch
set ruler
set incsearch
set ignorecase
set smartcase
syntax on

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