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This critical bug is one of the reasons that non-English speaking communities doesn't adopt Python as broadly as it happens in English world compared to other technologies (PHP etc.). 
# -*- coding: utf-8 -*-
import os
os.mkdir(u'Русское имя')
os.mkdir(u'English name')
for r, dirs, files in os.walk('.'):
 print dirs
This gives:
['English name']
[]
Windows Vista.
>dir /b
English name
test.py
Русское имя