It is a bug caused by using an invalid Encoding. It will be fixed in next version. In the meantime please use the following method as a workaround for incorrectly encoded names:
public static string FixEncoding(string text)
{
Encoding cp437 = Encoding.GetEncoding(437);
return cp437.GetString(Encoding.Default.GetBytes(text));
}
Thank you for pointing to this and we are sorry for any inconveniences.
UPDATE
The fix is part of Release 2012 R1. Default charset changed to IBM437 (used to be Encoding.Default).