So I got a little done last night. I stripped out all the unicode stuff - I decided that's completely pointless and it'll just confuse matters. So the whole server is now MBCS. I aslo added initial TA2 Advanced protocol support, which is just a case of changing a few constants that are passed to Lua and adding support for logging in with the "TA2" username.
Not really much to report, but it explains my latest distraction.