This seemed to get the encoding right:
# -*- coding: utf-8 -*-
name = u'Daemòná'
charInfo = {'region':'eu', 'realm':"Khaz'goroth", 'name':name.encode("utf-8"), 'talents':None, 'stormlash':False, 'pvp':False, 'shiv':0}
However, I got an error when I ran it. The main hand axe was return a 0 instead of the 1 expected as the subclass, so I had to change line 280 to the following in import_character.py:
weaponMap = {0:'axe', 2:'2h_axe', 3:'bow', 4:'rifle',5:'mace', 6:'2h_mace', 7:'polearm', 8:'sword', 9:'2H_sword', 10:'staff',
11:'exotic', 12:'2h_exotic', 13:'fist', 14:'misc', 15:'dagger', 16:'thrown', 17:'spear', 18:'xbow', 19:'wand',
20:'fishing_pole'}