We plan to change our console code page to 1252 shortly.
We are in the process of analyzing the impact of this move.
I noticed that when we change the value for HKLM-> System -> CurrentControlSet -> CONTROL -> NLS -> Codepage -> OEMCP from 850 to 1252, the utility BCP behaves well (good character conversions between the client and the server in both directions).
This is not the case for osql. Osql still assume that the script it execute is encoded with code page 850. Where does OSQL read this value?