The decoder detection seems to focus on 2-4 byte encoding. Many times you 
will get a text in iso-8859-1
or cp-1250 or other 1 byte encoding and none of this is covered there. I 
might not make sense to extend the
decoder if it is not meant for 1 byte encoding. In that case adding the 
alternative decoder to contrib would be
a better idea.

BTW, you the best way to do the conversion is probably customization of the 
file store method.
In your model you do:
Field("my_file", "upload", autodelete=True, custom_store=store_my_file)

And then implement store_my_file based on the original Field.store method:
http://code.google.com/p/web2py/source/browse/gluon/dal.py#7334


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