Umlaut search osing ldapsearch.dll

Version 1
    This document was generated from CDN thread

    Created by: Nikolay Jinjihashvili on 12-07-2010 08:12:10 PM
    We have developed a search function using the LDAPSearch functionality, and it works fine with English US Characters.  For some reason when using a German Language Localle, and searching for names with Umlaut characters, when we enter the umlau character like ü in the name, it does not return any results.  when doing a packet trace, looks like the search string for that character is being passed as \303\274 to AD, but AD is not finding a match.  When I do a search using a plain ldap browser, it uses a same search string and returns a result. 
    Any suggestions?  I belive that the DLLmight not be passing the utf-8 information, or I just don't know how to configure it. 
    Please help