Why don't you try changing the console window for Liberal Crime Squad from Raster Fonts (i.e. Terminal) to the TrueType font Lucida Console? Liberal Crime Squad is set to change its locale and display code page to display Code Page 437, the standard one from DOS on U.S. English locales, as well as the standard one for DOS boxes and console windows in Windows on U.S. English locales. Liberal Crime Squad overrides the locale to display Code Page 437 on Windows if you're not set up for a U.S. English locale, but this only works if the console window is using a TrueType font, rather than a raster font. See if the workaround of using Lucida Console for your console window works (you should be using version 4.07.4 beta or later, as this feature did not exist in any previous versions).
Or, for a completely different strategy, you could try the Linux/Mac OS X/UNIX-like operating system version of Liberal Crime Squad, which you CAN compile and run on Windows, by using Cygwin (Cywin builds a POSIX-compliant layer on top of Windows that is quite similar to Linux). If I recall correctly, the Linux/Mac OX X/UNIX/Cygwin version is able to use Unicode for all text display, avoiding any problems with code pages, and always displaying the correct characters. At least in theory that's what should happen, I haven't personally tested it out to verify this. And with Cygwin you can even compile, build, and run the Linux version of the game on Windows, which would have the primary benefit of displaying the correct characters no matter what locale you have Windows set to, and without having to switch from raster fonts to Lucida Console.
Of course, that all goes out the window if Cygwin implements console windows through direct calls to the Win32 API, in which case you'd still get the wrong characters when your console window is set to a raster font, even if you compile the game under Cygwin. After all, this is all because of a bug in the Win32 API and how it implements console windows. Using Cygwin to ensure proper display of extended characters would only work if Cygwin has its own separate implementation of console windows that is independent of Microsoft's implementation of console windows. And I don't really know whether or not that's the way Cygwin has it set up. But it could be worth a try... if any of you are feeling adventurous why don't you try it out and report back whether or not this idea of mine works?