How can I set the encoding of shell-command-on-region output?

Question

I have a small elisp script which applies Perl::Tidy on region or whole file. For reference, here's the script (borrowed from EmacsWiki):

(defun perltidy-command(start end)
"The perltidy command we pass markers to."
(shell-command-on-region start 
                       end 
                       "perltidy" 
                       t
                       t
                       (get-buffer-create "*Perltidy Output*")))

(defun perltidy-dwim (arg)
"Perltidy a region of the entire buffer"
(interactive "P")
(let ((point (point)) (start) (end))
(if (and mark-active transient-mark-mode)
 (setq start (region-beginning)
    end (region-end))
  (setq start (point-min)
  end (point-max)))
(perltidy-command start end)
(goto-char point)))

(global-set-key "\C-ct" 'perltidy-dwim)

I'm using current Emacs 23.1 for Windows (EmacsW32). The problem I'm having is that if I apply that script on a UTF-8 coded file ("U(Unix)" in the status bar) the output comes back Latin-1 coded, i.e. two or more characters for each non-ASCII source character.

Is there any way I can fix that?

EDIT: Problem seems to be solved by using (set-terminal-coding-system 'utf-8-unix) in my init.el. In anyone has other solutions, go ahead and write them!