Time and time again, the use of any character in a post subject line or heading beyond the US-ASCII repertoire causes such characters to be incorrectly escaped. The entire site has to be UTF-8-compliant.
This is actually (mostly) due to the sIFR Flash thing that formats the headings in a custom font. It doesn't seem to be able to handle anything outside simple ASCII. The fact that often when you post something (including topic titles) some auto-formatting takes place, converting dumb quotes to smart quotes and so forth, which sIFR can't properly display. I don't think this is inherent to the way sIFR works. Maybe it is.
sIFR can handle characters beyond ASCII, see its How to use and Tricks pages.
I am sure that the fonts featured in the header do contain an ellipsis, an em-dash etc., and also offer a decent language support.
However – IIRC –, Typophile uses something different than sIFR (see Christian Robertson’s comment here).
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