Experiencing the same problem with Norwegian special characters (æ ø å). It
appears that the request converts the search string to an ASCII string, thereby
replacing special characters with their ASCII representation. Upon being used
for searching, thereafter being displayed in the search form again, the ASCII
representation is used.
I'm not able to try it out on the latest source (some problems with
bootstrapping those versionable nodes). If it isn't fixed (which I don't think
it is), this should reported as a bug in the issue tracker. Give it a try:
http://jira.magnolia.info
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