Just wondering – is it ISO/IEC 8859-1 or UTF-8 that is supported? When I connect with gnome-terminal encoding set to ISO/IEC 8859-1, things look right (see Selection_020.png), but UTF-8 does not (see Selection_021.png).
When I use MudletRL 3.0.1, it shows the characters fine regardless if the UTF-8 option is enabled or not.