If your HAML chokes on Unicode characters (within or outside LiveReload), you might want to add the following line to the top of your Unicode files:
-# coding: utf-8
This should only happen when using Ruby 1.9 configured through Compilation Options. The line is documented here.
This problems seems to occur for some people but not others. In particular, it does not occur for me, so I don't really understand what happens here. If you can shed some light on it, please give me a note!