International characters in Terminal

[ofi]

Does anybody know if it's somehow possible to view and write international characters in the Terminal app? In my case the swedish letters åäö show up like ? and sometimes conjunction with other characters.
I've tried to change the default text encoding (UTF-8) in the Terminal but mostly got even worse results.

Is there some sort of UNIX hack or something that can help me out =)

I'm grateful for any hints I can get to make this work!

Sorry for any grammar or spelling errors...

/Christofer

[oeyvind]

Think it's broken for the current version... one can't display nor see double-byte characters (Chinese, Korean and Japanese)as well... hope Apple will fix it soon.