The file 

sitecustomize.py

usually goes in ${pythondir}/lib/site-packages/
where pythondir is your python-direcrory.

The file sets the default encoding to
iso-8859-1 for western europe non-ASCII characters.

More information? See
http://diveintopython.org/xml_processing/unicode.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
setdefaultencoding(name)
   Set the current default string encoding used by the Unicode
   implementation. If name does not match any available encoding,
   LookupError is raised. This function is only intended to be
   used by the site module implementation and, where needed, by
   sitecustomize. Once used by the site module, it is removed from
   the sys module's namespace. New in version 2.0.
   From: Python Library Reference, 3.1 sys -- System-specific
   parameters and functions



