Freeradius + portuguese characters in Active Directory

Hi, I am creating a user account in AD with portuguese character and have the freeradius configured properly. But i am not able to get the successfull authentication. For example, i added a user account "catónio" and displayname as "catónio" But the radius server log shows, sending a user name as "cat\5c303\5c263nio ". Do we need to do anything different to support languages other than english or am i missing some other configuration? FYI: If i change the user account to plain exglish characters then it works, so there are no issues with configuration settings. Any idea why it happens and how to get it work with? Thanks, Nikitha