SSH into the box as root, create a bash script file, call it UT8.sh
copy the following into, chmod 777 it and run
#!/bin/bash
# Script to convert SME server panel to UTF-8
# original author  yythoss walter.thoss@swt-online.de
# last auhtor : Jean-Philippe Pialasse aka Unnilennium tests@pialasse.com
# licence GPL
#
#History
# 2008-06-07
# - added check with iconv to allow to run script as often as you need
# - added incremental backup of the locals
# charset UTF-8
to=$(echo "UTF-8" | tr '[[:upper:]]' '[[:lower:]]')
# function to convert
function code() {
    count=0
    for f in ${files
        count=$(( $count + 1))
        # check if the file is explicitly  declared to be in utf8
        type="$(file "$f" | sed 's/^.*:\s\(UTF-8\|ASCII\)\s.*/\1/' | tr '[[:upper:]]' '[[:lower:]]')"
        # check if the file is in utf8 => return an error if not in UTF8
        converted="$(iconv -f UTF-8 -t UTF-8 --output=/dev/null $f 2>&1 )"
        # if the file is declared to be utf8 do nothing
        if [ "$type" = "$to" ]; then
            echo -n "$count: $f is already $to! => done."
            echo
        # if the file is already in utf8 do nothing
        elif [ "$converted" = "" ] ; then
            echo -n "$count: $f was already converted using this script $to! => nothing to do."
            echo
        # else you can do the job
        else
            case $type in
                *iso-8859*)
                echo -n "$count: Recode now $f to $to!"
                echo
                iconv -f "ISO-8859-1" -t "$to" "$f" > "${f}.${to}"
                mv "${f}.${to}" "$f"
                [[ $? = 0 ]] && echo -n " => done." || echo -n " => failed."
                ;;
                *ascii*)
                echo -n "$count: Recode now $f to $to!"
                echo
                iconv -f "ascii" -t "$to" "$f" > "${f}.${to}"
                mv "${f}.${to}" "$f"
                [[ $? = 0 ]] && echo -n " => done." || echo -n " => failed."
                ;;
                *sgml*)
                echo -n "$count: Recode now $f to $to!"
                echo
                iconv -t "$to" "$f" > "${f}.${to}"
                mv "${f}.${to}" "$f"
                [[ $? = 0 ]] && echo -n " => done." || echo -n " => failed."
                ;;
                *)
                echo -n "Format $type not supported!"
                ;;
                esac && echo
        fi
    done
}
#save before running
number=$(( $(ls -1 locale*.tgz | wc -l) + 1 ))
tar czf locale$number.tgz /etc/e-smith/locale/*
# search for files ine mains languages (we skipped the link)
# why not using this instead : ls -l /etc/e-smith/locale | grep -v '\->'|awk  '{print $9}'|grep -v ^$
for lang in da de el en-us es fr hu id it nl pt_BR sl sv; do
        files=$(find "/etc/e-smith/locale/$lang/etc/e-smith/web/functions/" -iname "*" -type f -print)
        code
done
echo -n "Create the new Server Manager Panel..."
/etc/e-smith/events/actions/navigation-conf
echo