How does Matlab Character encoding affect work?

I had created a libraray block in 'Windows-1252'. When I tried to load it in a machine with character encoding 'US-ASCII', it showed this error(check the 'error image' at following path):

http://sana-shaikh.blogspot.in/

I changed my matlab character encoding to 'US-ASCII' and made the required changes, saved the changes and tried to load it again on the machine having 'US-ASCII' and 'Windows-1252'. It worked for both. Why was the error caused? Does it mean that it's not posssible to load a library created in 'Windows-1252' to a matlab with 'US-ASCII' character encoding?