This bug seems to be solved on Ubuntu 13.04 (and probably newer): Ensure the encoding is set to use UTF-8:
root@laptop:~# echo $LANG en_US.UTF-8 root@laptop:~# useradd hâkænശ root@laptop:~# passwd hâkænശ Enter new UNIX password: Retype new UNIX password: passwd: password updated successfully root@laptop:~# su - hâkænശ No directory, logging in with HOME=/ -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to the bug report. https://bugs.launchpad.net/bugs/23475 Title: Cannot create a user "håkan" To manage notifications about this bug go to: https://bugs.launchpad.net/shadow/+bug/23475/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs