Hi,
I recently tried to adopt localized resource names usage, in particular using the GitHub - kwi/i18n_routing: I18n routing module for Rails 2.3.x and Rails 3. Translate your routes with ease ! plugin, but faced a problem with HTML escaped non ANSI characters in route names.
I've created a ticket to track this down: https://rails.lighthouseapp.com/projects/8994-ruby-on-rails/tickets/4896
The problem was introduced with http://dev.rubyonrails.org/changeset/6185 which basically tried to fix another issue.