Fix bug #7840 with default terminal and keyboard encodings.

 terminal.c (create_terminal): Use default-keyboard-coding-system
 and default-terminal-coding-system to initialize coding systems of
 the new terminal.

src/ChangeLog

+2011-02-18  Eli Zaretskii  <eliz@gnu.org>
+
+	* terminal.c (create_terminal): Use default-keyboard-coding-system
+	and default-terminal-coding-system to initialize coding systems of
+	the new terminal.  (Bug#7840)
+
 2011-02-18  Stefan Monnier  <monnier@iro.umontreal.ca>
 	* lisp.h (BYTE_MARK_STACK): New macro.

src/terminal.c

@@ -223,6 +223,7 @@ struct terminal *
 create_terminal (void)
 {
   struct terminal *terminal = allocate_terminal ();
+  Lisp_Object terminal_coding, keyboard_coding;
 
   terminal->name = NULL;
   terminal->next_terminal = terminal_list;
@@ -235,8 +236,24 @@ create_terminal (void)
   terminal->terminal_coding =
     (struct coding_system *) xmalloc (sizeof (struct coding_system));
 
-  setup_coding_system (Qno_conversion, terminal->keyboard_coding);
-  setup_coding_system (Qundecided, terminal->terminal_coding);
+  /* If default coding systems for the terminal and the keyboard are
+     already defined, use them in preference to the defaults.  This is
+     needed when Emacs runs in daemon mode.  */
+  keyboard_coding =
+    find_symbol_value (intern ("default-keyboard-coding-system"));
+  if (NILP (keyboard_coding)
+      || EQ (keyboard_coding, Qunbound)
+      || NILP (Fcoding_system_p (keyboard_coding)))
+    keyboard_coding = Qno_conversion;
+  terminal_coding =
+    find_symbol_value (intern ("default-terminal-coding-system"));
+  if (NILP (terminal_coding)
+      || EQ (terminal_coding, Qunbound)
+      || NILP (Fcoding_system_p (terminal_coding)))
+    terminal_coding = Qundecided;
+
+  setup_coding_system (keyboard_coding, terminal->keyboard_coding);
+  setup_coding_system (terminal_coding, terminal->terminal_coding);
 
   terminal->param_alist = Qnil;
   return terminal;