Confirmed. I have my locale set to en_US.UTF-8, using nedit 5.5-1ubuntu1. The unicode test file at http://www.cl.cam.ac.uk/~mgk25/ucs/examples/UTF-8-demo.txt displays in a mangled fashion; it looks like ISO 8859.
** Changed in: nedit (Ubuntu)
Status: Unconfirmed => Confirmed
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NEdit doesn't work support UTF
https://launchpad.net/bugs/1687
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