Problem with Diacriticals in Playlist file

[iPodVT]

I have been 100% successful in generating .m3u and .m3u8 playlist files on my Mac for use on my Rockboxed iPods, and they have always worked perfectly - that is, until I had a song title that contained a diacritical.  I have discovered that when viewing those song listings in the playlist files in the iPod's Playlist Catalog, the words containing the diacriticals are not properly displayed and the correct song will cue and go into play mode, but the song won't progress past 0:00 no matter what I try.  When I save a current playlist to file directly on the iPod, with diactricals in a song title, it works perfectly - but not when I create the file externally on my Mac.

Has anyone else encountered this?

[iPodVT]

Correction:  I should have said "dynamic playlist" instead of "current playlist" - as in a playlist dynamically generated when I start playing an album via the iPod's database.