Comment 1 for bug 274100

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John A Meinel (jameinel) wrote : Re: bzr v1.7.0 crashes on 'bzr update'

Your system is telling us that paths are encoded in "ASCII", but you are trying to checkout a file which is not ASCII.

Probably it is just a configuration issue. I don't know your preferred language, but doing something like:

export LANG=en_US.UTF-8
bzr update

will cause it to work. As that tells us that things are actually encoded in UTF-8, and thus we can handle non-ascii characters.