Open the file in and editor that allows you to specify the input encoding and specify the encoding to use when saving. I believe Notepad++ can do this.
Open the file ensuring you open it as cp1252 (or just make sure it looks like) then save as and select uft8 as the output encoding. Then Cool Reader will be able to properly display the characters : á, é í, ó, õ, as they will be encoded as it expects them to be.
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