For more details read the ISO 8859-1 HOWTO.
Create a $HOME/.inputrc contain the following:
----- set meta-flag On set convert-meta Off set output-meta On -----
Define the following in the $HOME/.login or /etc/csh.login:
setenv LANG iw_IL.ISO8859-8 (or iw_IL)
Actually because the binary version of tcsh is complied without nls the LANG
can be set to anything and it will still work (no need for /usr/lib/nls...).
The lang. name also shows my Digital bias ...