Quote:
Originally Posted by mickblu
Thank you! Strangely enough I went to Preferences | Conversion | Common Options | Look and Feel and did what you suggested and then re-converted the book (having deleted the mobi first) to no avail. The end result was no different than before. I then clicked on the 'Restore defaults' button in that Preference pane and tried the process again. This time I got the ? instead of the accented character.
In desperation I navigated to the Look and Feel section of the conversion dialogue for that specific file and strangely enough, even though I had set the default in the Preferences, here they were set to the transliterate mode, so I unchecked that and voila! it worked!
Thanks you for pointing me in the right direction, but I am still puzzled by the fact that although the general preference is set one way, the individual conversion is set a different way for preferences.
Bottom line is that it worked! 
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Once converted, the settings are THEN stored with the books metadata.
In the conversion Dialog, Use the Restore defaults tick/button to cause the previous usage setting to be forgotten (rereads the current Preference)