LaTeX doesn't support Unicode. You need XeLaTeX for that: http://i.imgur.com/Yx9x4.png (code is at http://paste.pocoo.org/show/295774/)
\usepackage[utf8x]{inputenc}
\usepackage{ucs}
then the inputenc macro package does a first pass on the document, handing off all non-ASCII characters to ucs to replace them with LaTeX commands to generate the appropriate characters, if supported. So, ö gets replaced by \"{o}, א gets replaced with \hebalef, etc. Doesn't work for everything, but handles a good portion of common languages. ! Undefined control sequence.
\u-default-1488 #1->\hebalef
And the Japanese example above gave me: Package ucs Error: Unknown Unicode character 12371 = U+3053
Either way, there's not much of a point in using LaTeX when XeLaTeX is available, save for intercompatibility. So until sites like this one start moving to XeTeX/XeLaTeX, we'll still often be stuck without (true) Unicode.But yeah, XeLaTeX makes that all much simpler. The LaTeX solution is mostly good if you're already using LaTeX for some reason, but need to include non-ASCII text from a limited range of languages (e.g. you're writing a Hebrew document, or an English document with a Greek literature quotation).
\usepackage[utf8]{inputenc}
It seems utf8x is more complete, but not officially supported. I haven't needeced the ucs package. (Maybe needed for extended characters, Chinese?)http://stackoverflow.com/questions/1797841/icelandic-utf8-an...
By the way, here is a document that can be compiled both with LaTeX and XeLaTeX, with Unicode:
http://ustunozgur.com/compiling-documents-via-both-latex-and...
\documentclass[12pt,ukrainian]{article}
\usepackage[utf8]{inputenc}
\usepackage[T2A]{fontenc}
\usepackage[ukrainian]{babel}
\title{Вітаю, світе!}
\begin{document}
\maketitle
Вітаю, світе! Як ся маєшся?
\end{document}