As I can see, there is no way to deal with files on msdos filesystem with names containing non-latin-1 characters. Win95 long file names (LFN) stored on this filesystem in UTF-16 encoding. Our current msdosfs implementation converts them to UNIX names with ISO-8859-1 encoding and vice versa. If filename contains non-ISO-8859-1 characters, there is no way to open this file and this file even not appears in directory listings. Also, ISO-8859-1 is not a very popular encoding for UNIX-like desktops in our days. I wrote a quick fix for this by changing LFN<->UNIX names conversion to UTF-16<->UTF-8 (UTF-16 surrogates, used by WinXP and later MS systems are supported). Diff file attached.
There are still some things to do. DOS 8.3 names to UNIX names conversion should be also adjusted (and probably we should write only ASCII characters in DOS name like WinNT does, because short file names in DOS/Windows stored in locale-specific encodings). We need to do something when file with name with illegal UTF-8 sequences created (may be return an error). We need a shared character set conversion utilities between msdosfs and ntfs implementations. We need to use case-insensitive names comparasion (but is not too easy with unicode). May be my patch helps somebody. Any comments? [demime 1.01d removed an attachment of type application/octet-stream which had a name of msdos.diff]

