I know someone with an é in his name. He once made the mistake of using that character in his username.

Windows broke. Programs broke. The registry broke. Special characters work well enough, but never use them in standard directory paths.

If you want your folder to be written correctly in your own language, you can use desktop.ini to correct the name of the folder in Windows Explorer:

    [.ShellClassInfo]
    LocalizedResourceName=Fàñćŷ Näm̀é

Put that into a desktop.ini file, assign it the right attributes (`attrib +S +H desktop.ini`) and your folder will look right in any program that uses the shell API without any risk of breaking programs.