I built a installer based on this branch: http://dl.dropbox.com/u/4494367/bzr-2.2.0-setup.exe

I was not able to go through the test case given in the bug, as I was not able to paste the unicode string into the console. So I created a branch on linux, and pulled it. The results were not good.

C:\Users\Gary\test>bzr pull sftp://garyvdm@192.168.1.152/home/garyvdm/test_unicode
Connected (version 2.0, client OpenSSH_5.3p1)
Authentication (publickey) failed.
SSH garyvdm@192.168.1.152 password:
Authentication (password) successful!
Secsh channel 1 opened.
[chan 1] Opened sftp connection (server version 3)
+N  ????/
All changes applied successfully.
Now on revision 1.

C:\Users\Gary\test>bzr log
------------------------------------------------------------
revno: 1
committer: Gary van der Merwe <email address hidden>
branch nick: test_unicode
timestamp: Tue 2010-09-07 21:05:39 +0200
message:
  ????

C:\Users\Gary\test>bzr ls
bzr: ERROR: exceptions.UnicodeEncodeError: 'charmap' codec can't encode characte
rs in position 0-3: character maps to <undefined>

Traceback (most recent call last):
  File "bzrlib\commands.pyo", line 912, in exception_to_return_code
  File "bzrlib\commands.pyo", line 1112, in run_bzr
  File "bzrlib\commands.pyo", line 690, in run_argv_aliases
  File "bzrlib\commands.pyo", line 705, in run
  File "bzrlib\cleanup.pyo", line 135, in run_simple
  File "bzrlib\cleanup.pyo", line 165, in _do_with_cleanups
  File "bzrlib\commands.pyo", line 1127, in ignore_pipe
  File "bzrlib\builtins.pyo", line 2613, in run
  File "bzrlib\ui\text.pyo", line 538, in write
  File "codecs.pyo", line 351, in write
  File "encodings\cp437.pyo", line 12, in encode
UnicodeEncodeError: 'charmap' codec can't encode characters in position 0-3: cha
racter maps to <undefined>

bzr 2.2.0 on python 2.6.4 (Windows-post2008Server-6.1.7600)
arguments: ['bzr', 'ls']
encoding: 'cp1252', fsenc: 'mbcs', lang: None
plugins:
  bzrtools             C:\Program Files\Bazaar\plugins\bzrtools [2.2.0]
  colo                 C:\Program Files\Bazaar\plugins\colo [0.1.0]
  explorer             C:\Program Files\Bazaar\plugins\explorer [1.1b1]
  fastimport           C:\Program Files\Bazaar\plugins\fastimport [0.9.0dev]
  launchpad            C:\Program Files\Bazaar\plugins\launchpad [2.2.0]
  loom                 C:\Program Files\Bazaar\plugins\loom [2.2.1dev]
  netrc_credential_store C:\Program Files\Bazaar\plugins\netrc_credential_store
[2.2.0]
  news_merge           C:\Program Files\Bazaar\plugins\news_merge [2.2.0]
  pipeline             C:\Program Files\Bazaar\plugins\pipeline [unknown]
  qbzr                 C:\Program Files\Bazaar\plugins\qbzr [0.19.0]
  rewrite              C:\Program Files\Bazaar\plugins\rewrite [0.6.0]
  svn                  C:\Program Files\Bazaar\plugins\svn [1.0.3]
  upload               C:\Program Files\Bazaar\plugins\upload [1.0.0dev]
  xmloutput            C:\Program Files\Bazaar\plugins\xmloutput [0.8.6]

*** Bazaar has encountered an internal error.  This probably indicates a
    bug in Bazaar.  You can help us fix it by filing a bug report at
        https://bugs.launchpad.net/bzr/+filebug
    including this traceback and a description of the problem.

I don't know if I'm ment to configure anything to make this work. I also guess that the ls error is maybe a different bug.