Query problem: euro characters getting converted

I have a problem running queries under the BDE version 5.01.22.  I am
attempting to read a German address from a SQL Server database that has
an umlaut '' in it.  When I use the BDE to browse the database, I can
see the umlaut fine, but when I run a query against it, the umlaut in
the query result set has been converted to a poundsign '#'.

How can I prevent this?  Is there a way to get the BDE query engine to
accept 8-bit european ASCII characters?