The version of nano in Optware doesn’t have UTF-8 support for some reason. This took me ages to get working – hopefully it’ll help someone else.
I have made a compiled binary for Marvell Kirkwood CPU available here.
These are the steps taken to compile your own from source (you will need to have bootstrapped your NAS and have the development tools installed):
#-----compile ncurses static library - neither DSM nor ipkg provide headers cd /volume1/@tmp wget http://ftp.gnu.org/pub/gnu/ncurses/ncurses-5.9.tar.gz tar xvfz ncurses-5.9.tar.gz cd ncurses-5.9 ./configure --prefix=/opt --enable-widec make mkdir /tmp/lib cp lib/libncursesw.a /tmp/lib cd .. #-----compile nano wget http://www.nano-editor.org/dist/v2.2/nano-2.2.6.tar.gz tar xvfz nano-2.2.6.tar.gz cd nano-2.2.6 ./configure --prefix=/opt --includedir=/volume1/@tmp/ncurses-5.9/include --libdir=/tmp/lib --enable-utf8 --disable-nls --enable-color --enable-extra --enable-multibuffer --enable-nanorc sed -i -e 's/^CPPFLAGS = -I\/usr\/include\/ncursesw/CPPFLAGS = -I\/volume1\/@tmp\/ncurses-5.9\/include -L\/tmp\/lib/' Makefile sed -i -e 's/^CPPFLAGS = -I\/usr\/include\/ncursesw/CPPFLAGS = -I\/volume1\/@tmp\/ncurses-5.9\/include -L\/tmp\/lib/' src/Makefile sed -i -e 's/^LDFLAGS.*$/LDFLAGS = -L\/tmp\/lib/' Makefile sed -i -e 's/^LDFLAGS.*$/LDFLAGS = -L\/tmp\/lib/' src/Makefile make make install
PC LOAD LETTER 
tar xvfz line failed until I cut the z
the configure line give error no acceptable cc found in $PATH
cannot continue
Did you bootstrap your NASand install the dev tools?
http://forum.synology.com/wiki/index.php/Overview_on_modifying_the_Synology_Server,_bootstrap,_ipkg_etc
There is no C compiler installed until you have done this. The version of the tar binary probably gets updated too, hence the problem with the z option. Have a look at the dev tools part of my guide here:
https://pcloadletter.co.uk/2011/08/02/serviio-0-6-on-synology-nas/