This is an archived snapshot of W3C's public bugzilla bug tracker, decommissioned in April 2019. Please see the home page for more details.
The options > Character encoding menu has no obvious function. If the content-type meta tag is missing the parser defaults to utf-8 regardless of the menu selection. This is a problem when the website needs iso-8859-1 (Western European)
The character encoding override was indeed broken, and is now fixed in the CVS version of the validator. The fix will be in the next beta of the validator. Thank you very much for the report.