internationalization

Can anybody offer any advice on implementing an internationalized webDAV
server that will work with existing webDAV clients.
The server I am developing encodes all data in utf-8.  Whenever I return
this multistatus response to Microsoft web folders (under Win2K) if the
utf-8 stream contains all latin (single-byte) characters it works fine.  If
there are characters in the stream that are multi-byte, web folders crashes.
e.g.
<D:displayname>My Folder</D:displayname>
^--- works fine
<D:displayName>["My Folder" in the Arabic unicode subrange]</D:displayName>
^--- web folders crashes and explorer goes down with it.

Under WinNT webfolders does not crash, but I get the following error
"The current operation cannot be completed because an unexpected error has
occurred"

Using Riverfront WebDrive I do not receive any errors but the UTF-8 data is
displayed as ASCII.

Thanks for any help,
Adam Klatzkin
Software Engineer
Bentley Systems