Loads a character encoding vector from from a file and changes the fonts encoding vector to it. As a PostScript fonts default vector lacks most of the character positions above 127, you'll definitely want to change this if you use an other language than english. The exact format of this file is described in T1libs documentation. T1lib comes with two ready-to-use files, IsoLatin1.enc and IsoLatin2.enc.
If you find yourself using this function all the time, a much better way to define the encoding is to set ps.default_encoding in the configuration file to point to the right encoding file and all fonts you load will automatically have the right encoding.