Do you mean storing utf-8 characters in a DBF? You can absolutely
store utf-8 characters in a DBF. The process is a little obscure, as
ESRI has docs buried online. I know this doc refers to ArcPad, but it
applies to ArcGIS as well.
http://webhelp.esri.com/arcpad/8.0/referenceguide/index.htm#locales/concept_local.htm
When using utf-8 text and shape files, be sure to wipe out the LDID
(29th byte) in the DBF header, and make a text codepage file .cpg,
with the text
UTF-8
Dennis