I have the same issue (but on a swedish site). I have fixed it temporarily by handling the URL's manually (meta-data / URL) when the URL's contain swedish-specific characters. That's not a very userfriendly way of handling it, so I'm very interested in a solution to this!
12 December 2008 at 3:59am
I'd love a solution as well as the site I'm currently developing has an Ãƒâ€¦ in the name, which I would also love to use in the page title, current solution is a picture with the name but that won't show up on google ;)