UTF-8 problem in python when reading chars

Question

I\'m using Python 2.5. What is going on here? What have I misunderstood? How can I fix it?

in.txt:

Stäckövérfløw

code.py

Answer 1

One may want to just use

f = open('in.txt','r')
for line in f:
    print line
    for i in line.decode('utf-8'):
        print i,
f.close()