Nowadays, special characters are allowed in your domain name. While this can be a novel feature, it is good to know a little about how it works, because it can also cause some problems. In this section, I discuss the Scandinavian characters æ, ø, å, ä and ö. The same applies for accents (diacritics).
When you write æ, ø, å, ä or ö in a domain name, this not actually what is used. Instead, there is something called "Punycode" which is an Internet standard. Software and web browsers can have trouble correctly interpreting these unless an extra software/web browser package is installed. Without the package, the software does not understand what to do with æ, ø, å, ä and ö.
For instance, Internet Explorer 6 (and older versions of IE) cannot handle special characters without the help of a plugin. The best solution is to upgrade Internet Explorer or install Firefox.
Below are some examples of what domain names may actually be: