I recieved your test files and tried to simulate this problem with CVS (I do not have access to the VSS software so I cannot test with that plugin), but doing the following:
1) Create new Web Project, dropped your "fine.jsp" file into the webroot.
2) Checked everything into a new CVS module
3) Opened the fine.jsp page and added a sentence to it and saved it
4) With the file still open, I went to Replace With > Latest from HEAD and had Eclipse pull down the newest copy from CVS
5) The editor's contents refreshed with the new file contents and displayed all the characters correctly.
So there is some combination between the VSS Plugin and the MyEclipse
editors that is going on. I have asked if anyone on our team has access to VSS to test this.