[MERGE] better support of unicode paths on Windows

[Alexander Belchenko]

Bzr has one latent bug related to create new .bzr directory inside 
unicode directory. The problem occurs when unicode path cannot be 
encoded in current user encoding, as pointed by INADA Naoki, see
https://bugs.launchpad.net/tortoisebzr/+bug/335362/comments/41

This is rare condition, but bug itself is very serious.
Please, merge for 1.17.
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