PEP 263 defines how to declare Python source code encoding.
Normally, the first 2 lines of a Python file should start with:
#!/usr/bin/python
# -*- c
If I'm not mistaken, the original proposal for source file encodings was to use a regular expression for the first couple of lines, which would allow both.
I think the regex was something along the lines of coding:
followed by something.
I found this: http://www.python.org/dev/peps/pep-0263/ Which is the original proposal, but I can't seem to find the final spec stating exactly what they did.
I've certainly used encoding:
to great effect, so obviously that works.
Try changing to something completely different, like duhcoding: ...
to see if that works just as well.