Chinese file names confuse VLC in a mixed file type folder

[dal987]

I've used VLC player for a long time, but here's a case where KLM player gets it right, but VLC player seems to have a problem.

Is there any setting or option I'm missing in VLC player, or is this a bug?

If I try to play a music file named with Chinese characters
e.g 对你有感觉.mp3 - when the folder also contains a whole mix of multimedia & other files such as mp4, aiff, txt, mid, smi and so on.

1. If I drop such a file onto my VLC launchbar shortcut I get:

File reading failed:
VLC could not open the file "E:\Multimedia format examples\?????.mp3".
Your input can't be opened:
VLC is unable to open the MRL 'file:///E:/Multimedia%20format%20examples/%3F%3F%3F%3F%3F.mp3'. Check the log for details.& the file doesn't play.

Is this a unicode issue?

2. If I drop the file onto VLC's GUI or open it via Media, Open file I get

VLC can't recognize the input's format:
The format of 'file:///E:/Multimedia%20format%20examples/Mmedia%20file%20types%20list%20dal.txt' cannot be detected. Have a look at the log for details.
VLC can't recognize the input's format:
The format of 'file:///E:/Multimedia%20format%20examples/firstrun.smi' cannot be detected. Have a look at the log for details.
VLC can't recognize the input's format:
The format of 'file:///E:/Multimedia%20format%20examples/readme.txt' cannot be detected. Have a look at the log for details.
but the file plays.

It almost seems that VLC player gets confused scanning the folder for valid filetypes when the filename is Chinese.

English Vista Ultimate SP2, 32 bit.

Hope you can help! Thanks.