@Daadaa - So-called ASCII (properly called US-ASCII) doesn't support diacritics, period. There's only so much you can do in 7 bits. Is your device really limited to 7 bit ASCII or can it cope with 8 bits, the utf-8 encoding option (sometimes referred to a Extended ASCII) has a number of variants.
Re the punctuation - it looks more like it needs unsmartening
I just converted an epub with diacritics (French) and curly quotes using the 'utf-8' variant of utf-8 encoding. The diacritics survived and the curly quotes were straightened.
BR
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