folder and file names with foreign characters

I have many data files in folders and sub-folders. All
these folder and file names contain foreign characters
(Chinese). They appear normal in Windows XP explorer. I
can copy and move files. But Matlab won't recognize these
folders and files. In Matlab command window, when I try to
change the current directory using the "Browse for folder"
button, I can choose the folder with the Chinese
characters (it displays the correct Chinese character),
but the command window shows:

??? Error using ==> cd
Cannot CD to C:\stdd\???? (Name is nonexistent or not a
directory).

When I double click a .txt file with Chinese character
file name, it pops up an error dialog indicating "file not
found". However, I can open it using notepad and it looks
fine. I saved the text file in all three types of unicode
but medit can't open it.

So the question is, can Matlab string contain foreign
characters? My need is to use a string to represent these
fold and file names and then do copy, move and stuff.

I am using R2007b in XP. Thanks!
.