XJed with Unicode support
There are a version of XJed with Unicode support. the new version of
xterm.c is here
Some screenshots:

XJed compiled with SLang 1.4.9, running on an iso-8859 locale, showing
some italian words (just to show that this still works as before).
This uses the core fonts rendering.

As above, but using the Xft rendering engine (while without antialiasing
because the font is not truetype).

XJed compiled with SLang 2, on a non-utf8 locale. Core fonts.

As above, but using the Xft rendering engine.

XJed with SLang 2, on an utf8 locale, showing some Thai text (with
combining characters). Core fonts rendering engine.

As above, but using the Xft rendering engine).