found some interesting reading on unicode:
http://www.cl.cam.ac.uk/~mgk25/unicode.html#appshttp://en.wikipedia.org/wiki/WinZipit seems that unicode is far from completely supported in linux applications. many of the gnu tools we take advantage of from day to day, may not be fully patched to accept unicode characters. the winzip wikipedia article says that you must use winzip >= 11.2 for unicode support. i don't know the target version the linux tools support, but the windows side should be solved by installing the latest winzip, rather than using the builtin tool.
according to responses in this thread:
http://blogs.msdn.com/michkap/archive/2005/05/10/416181.aspxrar and 7-zip handle unicode flawlessly.
as to problems transferring to the usb, i believe usb drives use a fat32 partition. fat32 is a legacy partition and the linux tools may not be completely up to date as ms actively seeks to kill anyone that wants to read, write, execute to or from fat32. maybe windows has updated that partition type for unicode support, but due to it's age it may not have been updated in linux. some type of rar archive may be in order. i'd start with 7-zip. it's open source and cross platform. your milage may vary, but please let us know if it helps.