Windows version... problem with spanish characters

Hi all, I needed an IM to connect to both Yahoo and MSN and just decided in
favor of Everybuddy over Easy Message, Imici, Omni, Trillian and various
flavors of Jabber clients.
Now that I'm using it everyday, I noticed this thing where I can't get
message lines from people when they send any spanish character (like the ñ
char or any vowel with accent). Also, my typing line does weird thigs when I
type accented vowels (such as taking the cursor back one space *and a
fraction* and dragging all the subsequent letters forward as I keep typing).
My typing line shows the ''ñ'' but the other end does not read it.
I have followed several threads in the archives where this issue is
discussed, but all of them in the Linux/Unix world. I have no idea what
options should I use or are available to Windows users in the recoding tab
of the preferences.
I would appreciate any help since this *IS* the IM client I need and would
hate having to drop it because of such tiny detail. Thank you very much!