View > Set Encoding defaults to defaults to automatic detection. I can change that to manual and then choosing say utf8. However, that setting only lasts for that konqueror session.

I have looked at some of the *rc files for konqueror but cannot find where I can change the default behavior from automatic to manual. I have tried setting the default encoding in the control panel to utf8 but it doesn't seem to be recognized by the automatic/manual function of konqueror.

"Trying"? My contribution was much closer to a "feeble wave in the general direction of something that might lead you one step closer to a solution if you squint really hard and do all of the work."