diff --git a/runtime/doc/options.txt b/runtime/doc/options.txt
index f674154..b48030f 100644
--- a/runtime/doc/options.txt
+++ b/runtime/doc/options.txt
@@ -2436,6 +2436,9 @@
 	It should normally be kept at its default value, or set when Vim
 	starts up.  See |multibyte|.  To reload the menus see |:menutrans|.
 
+	This option cannot be set from a |modeline|.  It would most likely
+	corrupt the text.
+
 	NOTE: For GTK+ 2 it is highly recommended to set 'encoding' to
 	"utf-8".  Although care has been taken to allow different values of
 	'encoding', "utf-8" is the natural choice for the environment and
@@ -2619,6 +2622,7 @@
 			feature}
 			{not in Vi}
 	Sets the character encoding for the file of this buffer.
+
 	When 'fileencoding' is different from 'encoding', conversion will be
 	done when writing the file.  For reading see below.
 	When 'fileencoding' is empty, the same value as 'encoding' will be
@@ -2631,24 +2635,32 @@
 		is most likely done in a way that the reverse conversion
 		results in the same text.  When 'encoding' is not "utf-8" some
 		characters may be lost!
+
 	See 'encoding' for the possible values.  Additionally, values may be
 	specified that can be handled by the converter, see
 	|mbyte-conversion|.
+
 	When reading a file 'fileencoding' will be set from 'fileencodings'.
 	To read a file in a certain encoding it won't work by setting
 	'fileencoding', use the |++enc| argument.  One exception: when
 	'fileencodings' is empty the value of 'fileencoding' is used.
 	For a new file the global value of 'fileencoding' is used.
+
 	Prepending "8bit-" and "2byte-" has no meaning here, they are ignored.
 	When the option is set, the value is converted to lowercase.  Thus
 	you can set it with uppercase values too.  '_' characters are
 	replaced with '-'.  If a name is recognized from the list for
 	'encoding', it is replaced by the standard name.  For example
 	"ISO8859-2" becomes "iso-8859-2".
+
 	When this option is set, after starting to edit a file, the 'modified'
 	option is set, because the file would be different when written.
-	If you do this in a modeline, you might want to set 'nomodified' to
-	avoid this.
+
+	Keep in mind that changing 'fenc' from a modeline happens
+	AFTER the text has been read, thus it applies to when the file will be
+	written.  If you do set 'fenc' in a modeline, you might want to set
+	'nomodified' to avoid not being able to ":q".
+
 	This option can not be changed when 'modifiable' is off.
 
 							*'fe'*
diff --git a/runtime/doc/todo.txt b/runtime/doc/todo.txt
index 1797972..c4cda4a 100644
--- a/runtime/doc/todo.txt
+++ b/runtime/doc/todo.txt
@@ -560,11 +560,6 @@
 'arabicshape' when there is a character on the command line for which
 (ARABIC_CHAR(u8c)) is TRUE.
 
-Replace ccomplete.vim by cppcomplete.vim from www.vim.org?  script 1520
-by Vissale Neang.  (Martin Stubenschrott)
-Asked Vissale to make the scripts more friendly for the Vim distribution.
-New version received 2008 Jan 6.
-
 Cheng Fang made javacomplete. (2007 Aug 11)
 Asked about latest version: 0.77.1 is on www.vim.org.
 
@@ -1102,6 +1097,10 @@
   feature.  (Matt Wozniski, 2009 Apr 15)
   Patch go make gui highlight settings work in Vim without +gui feature.
   (Matt Wozniski, 2009 Mar 27)
+- Replace ccomplete.vim by cppcomplete.vim from www.vim.org?  script 1520 by
+  Vissale Neang.  (Martin Stubenschrott)
+  Asked Vissale to make the scripts more friendly for the Vim distribution.
+  New version received 2008 Jan 6.
 - Patch for supporting #rrggbb in color terminals.  (Matt Wozniski)
 6   In the quickfix window statusline add the command used to get the list of
     errors, e.g. ":make foo", ":grep something *.c".
@@ -1112,8 +1111,6 @@
     Fix for invalid memory access. (Lech Lorens, 2009 Apr 17)
 - Another patch for Javascript indenting. (Hari Kumar, 2010 Jul 11)
   Needs a few tests.
-- Disable setting 'encoding' from a modeline?  It usually causes problems,
-  can't do any good.  (Patch from Patrick Texier, 2008 Dec 9)
 - Redraw problem when appending digraph causes line to wrap. (James Vega, 2007
   Sep 18)  Patch by Ian Kelling, 2008 Aug 8.
 - Patch for colorscheme submenu. (Juergen Kraemer, 2008 Aug 20)
diff --git a/src/option.c b/src/option.c
index 2dfb6d9..fd763af 100644
--- a/src/option.c
+++ b/src/option.c
@@ -451,6 +451,7 @@
 #define P_INSECURE     0x400000L/* option was set from a modeline */
 #define P_PRI_MKRC     0x800000L/* priority for :mkvimrc (setting option has
 				   side effects) */
+#define P_NO_ML       0x1000000L/* not allowed in modeline */
 
 #define ISK_LATIN1  (char_u *)"@,48-57,_,192-255"
 
@@ -1015,7 +1016,7 @@
     {"edcompatible","ed",   P_BOOL|P_VI_DEF,
 			    (char_u *)&p_ed, PV_NONE,
 			    {(char_u *)FALSE, (char_u *)0L} SCRIPTID_INIT},
-    {"encoding",    "enc",  P_STRING|P_VI_DEF|P_RCLR,
+    {"encoding",    "enc",  P_STRING|P_VI_DEF|P_RCLR|P_NO_ML,
 #ifdef FEAT_MBYTE
 			    (char_u *)&p_enc, PV_NONE,
 			    {(char_u *)ENC_DFLT, (char_u *)0L}
@@ -4236,7 +4237,7 @@
 	    /* Disallow changing some options from modelines. */
 	    if (opt_flags & OPT_MODELINE)
 	    {
-		if (flags & P_SECURE)
+		if (flags & (P_SECURE | P_NO_ML))
 		{
 		    errmsg = (char_u *)_("E520: Not allowed in a modeline");
 		    goto skip;