Many thanks to the original question and @Excelan's solution as it definitely made me point in the right direction!
I ran into this problem using the Scala Eclipse IDE when working with new projects that I created, but did not experience problems when using imported projects. As soon as I saw the Excelan comment about the encoding I started working with, you can change the encoding of the Eclipse default text file for all projects in the settings, for example:
Open Preferences Expand the "General" menu. Select the "Workspace" menu. Change "Text file encoding" option from Default to Other and select UTF-8.
As soon as I completed these steps, I closed and re-eclipse. Each new worksheet created after this works great!

To change settings at the project level, right-click the project and select properties. The encoding of the text file is in the Resources menu.
To change the settings for a single file, right-click the file and select properties. The encoding of the text file is in the Resources menu.
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