Well, our board really wants to allow people to register names with faroese accidentals - described previously.
The ultimative test would be an acceptance of registering the name 'áýúíóæøåðÁÝÚÍÓÆØÅÐ.fo'. This is to be understood as a string of UTF8 chars, which is equivalent to any upper/lower case combination of the same UTF8 chars.
In our case, any other non-ASCII chars of UTF8 should be rejected .... I suppose that we as a ccTLD are authorized to decide on which chars are acceptable :-)
A short explanation might be that we need to expand the ASCII characters just a few bits, pr. ccTLD.
Regards Torkil