Problems with searching from location bar in Firefox

After upgrade to Firefox 8 I found out that when I try to search from location bar anything with diacritics (eg. “ěščřžýýáíéäö”) those characters are either removed, either replaced by ‘?’ character.

This is not Firefox issue.
At least in my case problem was caused by Locationbar² extension. By disabling it, everything started to work again.

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