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I'm using NetBeans Ruby IDE 070607. "Encoding" menu is now provided on property dialog of Ruby and RoR projects. It's great! However, on RoR project, the Encoding menu is located under "Run" category, I think it's source encoding so it should be located under Sources category.
The panel was named "Run" only by accident (because it was copied from the Ruby project where it's called Run). I've renamed the panel "Rails" now, since it contains Rails-oriented settings.
Reassigning this issue to newly created 'ruby' component.
Changing target milestone of all resolved Ruby issues from TBD to 6.0 Beta 1 build.