Your comments

Is that even possible?
Yes, this is explained in the manual: http://www.textasticapp.com/v4/manual/lessons/How_can_I_add_my_own_syntax_definitions__themes_and_templates.html
According to Wikipedia (http://en.wikipedia.org/wiki/ASCII), "Windows 1252" is also known as "ANSI". So try the "Western (Windows Latin 1, CP 1252)" encoding.
I was talking about when you are on the road, far away from your iPad. There are also people who don't have an iPad. :)
Reading the discussion, I might be wrong. Can you please enable the "Debug Log" setting in the connection's settings, try to connect again and send the log file to support@textasticapp.com?

Thanks!
That usually means that the SSH server doesn't have SFTP configured. Textastic does need the SFTP subsystem to transfer files.
The point is that the iPhone is always in your pocket while the iPad is not. So if the only thing you have with you is an iPhone and your boss calls you to fix an issue on the website: with an iPhone version you could.
I know that it's not perfect. Many people wanted it so I added it. Firebug Lite is loaded from the Firebug website, so it will always use the latest version. I hope they make it more touch-friendly.
I don't know if you have used GitHub before, but you can fork the project on GitHub and work on your own copy. You can also view all forks and see what other users work on. If you have modified an existing file or created a new one that you think is ready, you can send me a pull request so that I can add it to the main repository.

I'm also relatively new to GitHub, but maybe we could use GitHub "Issues" manage that.