UnicodeEncodeError when importing windows' version of xdg

Diego Sarmentero has a spanish win xp setup, and when he tried to run the SSO service to run the syncdaemon, he got the following trace:

C:\ubuntuone\ubuntu-sso-client>python ubuntu_sso\qt\tests\show_gui.py
Traceback (most recent call last):
 File "ubuntu_sso\qt\tests\show_gui.py", line 22, in <module>
   from ubuntu_sso.main.windows import UbuntuSSOClient
 File "C:\ubuntuone\ubuntu-sso-client\ubuntu_sso\main\__init__.py", line 27, in
 <module>
   from ubuntu_sso.account import Account
 File "C:\ubuntuone\ubuntu-sso-client\ubuntu_sso\account.py", line 33, in <modu
le>
   from ubuntu_sso.logger import setup_logging
 File "C:\ubuntuone\ubuntu-sso-client\ubuntu_sso\logger.py", line 28, in <modul
e>
   import xdg.BaseDirectory
 File "C:\Python27\lib\site-packages\xdg\BaseDirectory.py", line 91, in <module
>
   app_global_data_path, app_roaming_data_path)).split(';')
UnicodeEncodeError: 'ascii' codec can't encode character u'\xf3' in position 42:
 ordinal not in range(128)