First of all thanks for a great app!
I'm not sure whether this bug is in xbmcremote or xbmc itself so I apologize in advance for possible "false positive".
The bug is in using "foreign" characters in directory names on xbmc which break xbmcremote - ie I have directory in "Pictures" category that is called "Naše" (notice the s charon sign). When I try to enter this directory the xbmcremote breaks with "Connection failed: Unknown error". By starting it from shell ("-d connect" option) I caught the error - first xbmcreports: (notice the ĹĄ instead of š), and after that "the breaking" error:Obviously either the xbmcremote is not handling "foreign" characters correctly - or maybe xbmc remote is serving them incorrectly.

TIA!