I guess it was US-ascii. I have switched to utf-8. Let's see if that works better.
\chapter*{The Leading Ladies (\skt{atha nāyikābhedaprakaraṇam})}
\addcontentsline{toc}{chapter}{The Leading Ladies (\textsanskrit{atha
nāyikābhedaprakaraṇam})}
\markboth{Śrī Ujjvala-nīlamaṇi}{The Leading Ladies (\textsanskrit{atha
nāyikābhedaprakaraṇam})}
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