|You can paste special characters in if your operating system supports it. You can also input chars that are less than 256 directly using the alt+numpad combo. I think the newline is alt+13, tab is alt+9 or something.
For characters above the ascii standard, most os will not paste them correctly as far as I can tell. In Windows 2000 I can paste unicode from a program that supports unicode, but only if I do it one character at a time. I couldn't get Windows 98 to paste them at all (it does a mod 256 on everything as far as I can tell).
I think that unicode should be disabled by the tester (unless you are going to make it easier then this) because the support on different platforms is sketchy. I would definitely like to hear an official policy on this. Personally I think the people coding with char are building the buffer overflows of the future, but it's a very subjective issue.