I'm trying to install a xlrd 0.9.2 package on Python3.2 on windows 7. When I launch the setup.py install I receive encoding error: 'utf8' codec can't decode... 
The module (licenses.py) where the installer stops has an encoding declaration: 
# -*- coding: cp1252 -*-
but it seems the python is ignoring it. 
I was using Win cmd but also checked cygwin and have the same problem.
Few days ago I also had a problem with reading txt file that was in cp1252 even though I set this declaration in my script. I was using IDLE to run the script.
I'm not sure now if my python install has something missing or this is operating system issue
Upgraded to Python 3.3 and the library got installed ok. Not sure if that's a problem with Python 3.2 or the instance I had.
python encoding error at xlrd installation