I too, cling to my old Paintshop Pro v.9. I am still, all these years later, browned off that they sold out to Corel.
--- Re: extended character set --- as long as I am using a font in PSP to build the graphic that contains the special character, I paste in the character (usually from Sigil, but can also use a character map application), and have no problem getting the diacritics. Maybe the font you are using for these covers is the culprit.
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