g++ error message corrupt

I realize this forum is not specific to a compiler, but I'm hoping g++ is ubiquitous enough.

running g++ version 4.1.2 (required for my project)

$ g++ -c x.cc
x.cc: in constructor â
x.cc:76: error: no matching function for call to â

Essentially, every symbol in my code is printed as a "â" in the error messages
anyone seen this before and/or know how to fix it?

a colleague just found my problem... when I switch from xterm to gnome-terminal the symbols are reported correctly.
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