Hi Yoji,
1. Yes, all front-end can already be translated in CBSubs 1.0.3, and upcoming next version can have both frontend and whole admin area (backend) translated too.
2. Yes, all CBSubs translations are always UTF-8, and CBSubs adapts to the site's charset if it's not UTF-8.
How to do translation is described in the documentation. Please also contact (contact-form) Nick for translations coordination.