As formerly discussed Google had some bugs handling IDNs in its services and since things hardly changed. When you request an application API key from Google for your site (let’s say you want embed Maps) Google poorly url encode the entered domain, but Yahoo’s freshly updated Site Explorer tool even flunks IDNs. After adding my site to it, it says my request was not accepted because the url was malformed.
This whole procedure is beacuse a tiny accent, funny isn’t it. Friends here always kidding me that only dummies use IDNs (just beacuse they cannot open the link with IE, lol) but it’s a good test anyway and I face a lot of shortcomings. In most cases web based services are not prepared for handling IDNs yet (though you can register an international domain since 2004), they only understand the ASCII safe form of the domains (e.g. xn--gbor-5na.20y.hu for gábor.20y.hu).