By David Sweet
You can choose the dictionary to use for spell checking from the list of installed dictionaries.
If you choose Latin1 as your Encoding, then accented (or otherwise decorated characters) are recognized by KSpell. If you choose 7-Bit/ASCII, then it is assumed that decorated characters were entered into your document as two-character combinations. For example (in Spanish), in the word "espa'nol", the "'n" character combination is treated as an "n" with a tilde over it.
It is recommend that you do not change the first two options unless you have read the Interational ISpell man page.
KSpell introduction.