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Any live examples yet?
Is it the browser or HN that's turning that URL into http://xn----rmckbbajlc6dj7bxne2c.xn--wgbh1c/ ?
From TFA:

Icann warned that the internationalised domain names (IDNs), as they are known, would also not work on all PCs immediately.

"You may see a mangled string of letters and numbers, and perhaps some percent signs or a couple of "xn--"s mixed into the address bar," said Mr Davies. "Or it may not work at all."

That is how Internationalized Domain Names (http://en.wikipedia.org/wiki/Internationalized_domain_name) are encoded by the browser and/or OS to get around the fact that a lot of legacy systems assumed only ASCII characters would ever be used. There's RFCs that cover this which have been around for a number of years. Today is hardly the first day these have been live. (Correction: Doing this for the TLD is new.) On Twitter, various URL shorteners have started becoming popular which are using non-ASCII characters in the domain names.

Related: I recently put together a package for iPhone developers that adds some support for IDN to NSURL (this code will be deployed in the next update of Twitterrific for iPad). http://files.iconfactory.net/sean/NSURL+IFUnicodeURL/

The xn--… stuff is the real URL as it exists in the DNS.

Conversion to/from the user’s script is supposed to be done by the browser.

This has existed for quite a while, the new thing is that previously the TLD (i.e. country code) still had to be the old ASCII ISO code. Now even the TLD can be encoded, so that it will display in the country’s native script. So far there are 3 non-ASCII TLDs registered (that is, in the DNS they are still ASCII using puny coding).

http://en.wikipedia.org/wiki/Puny_code

Opera displays it with the actual characters.
I really enjoy chromes translate feature, It translated the text on the page well. However it fails on the text that is actually part of an image. I wonder if they have any plans in the future to use OCR on images during the translate process?
That's the first of the translate feature I've seen (trying Chrome 5 beta as my primary), didn't work for me on that page though - internal server error.
"biggest change" to the net "since it was invented 40 years ago"? Methinks not. Although on the more fundamental DNS level I can imagine they have a point.
While I appreciate change and improvements, I just wonder if this is really a good idea. Websites are language specific but URLs were forced to a limited character set. This was making it at least easy for everybody to type it. No matter if the website is chinese, japanese, arabic, etc. (Sort of least common denominator)

Am I the only one who thinks this?

EDIT: Spelling

Well, if the standard url naming was chinese characters (ie: what everybody is typing), do you think it would be easy for you? I think you would like to type/access urls in your own language.
Interesting thought. I suppose if computers were originating from China that would probably be the case. I doubt though that if they wanted to sell it to some other countries, the buyers, e.g. US, Europe consumers etc. would accept that increased complexity.

http://en.wikipedia.org/wiki/Lingua_franca

Don't more people on earth write in non-Latin script?
Okay, so where can I buy a bunch of domains?
And someone's already got http://www.xn--b1avn2f.com/ - a.k.a. HSBC.com :/
Registered in December last year, it seems.

I guess I shouldn't be surprised that the related searches are "Virus Software", "Virus", "Virus Trojan", etc. Not sure what "Ford" is doing in that list, though.

Any Persian examples? I'd like to surprise a friend. Perhaps HNers can post an example for each script or language.
How does one regiter these domain names? Are there any registrar who currently support this?
Spare a thought for maintainers of URL parsers and validators today. [a-z0-9-] just isn't going to cut it anymore.
"All three are Arabic script domains, and will enable domain names written fully right-to-left,"

The URL itself will still read left-to-right, so this doesn't seem like a big win.