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Actually you want Unicode, or UTF-16.
The number after the UTF is the number of bytes per character. ASCII is 7, and most of what we're used to can be expressed as 8. Obviously, 8 bits gives 2x the chars as 7 bits. A lot of accent chars, like in French, fit inside the 8 bit charset. But extended ones don't.
Unicode is stored as nvarchar and ntext and nchar types. The n means national, it gives you 65 K instead of 256 characters, by storing them as double byte. This means more disc IO to manipulate the data, but it gives you a much bigger alphabet to express your data with.
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