Remote Access Connection Manager does not store passwords that contain extended characters correctly in Windows Vista or Windows Server 2008
Consider the following scenario. You store a password in Windows Vista or Windows Server 2008. To do this, you use the Remote Access Connection manager. The password contains one extended character, such as capital C cedilla (Ç). In this scenario, an incorrect password is stored in the Credential Manager (CredMan) database.
This behavior may cause various issues in other components or mechanisms that use passwords that are stored in the CredMan database. For example, when you establish a virtual private network (VPN) connection before you log on to Windows, the Group Policies are not applied as expected.
For more information on this issue, including potential causes, workarounds, and resolutions, see: Microsoft KB Article KB983613.