I have the same problem with german "Umlaute". I also noticed that I only have the problem with Kubuntu 6.10 with Ubuntu the I don't have it (there the console font looks different).
-- Console displays local characters incorrectly https://launchpad.net/bugs/69559 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs