Dave, you were right! I changed the style in the Index Level 1 Palette on a Czech Index I am working on right now and the Index generated with the correct characters.

Still kind of buggy though, words like Úvod are listed under U, Řídicí is listed under O. Řídicí starts with a letter that looks like an R with a upside down ^ over it.

This is still way better than what I had to deal with before you came to the rescue. THANKS! :D