Understanding "Encoding" problems

[Rainer M. Krug]

Hi

I am sruggling understanding the encoding and if LaTeX / LyX use the 
same as BibTeX and which one I should use when and in a BibTex file, 
where I have different names from different countries with strange 
symbols, which would be the best encoding to choose?

Can somebody shed some light on this issue or refer me to a website 
which clarifies these issues?

Thanks

Rainer