I used yourls for a persian based community. you can find it at
www.linkak.com. However, I found some interesting issues.

There are some time non english words in the URLs like
http://sheida.com/2005/01/23/%D8%AF%D9%88%D8%B3%D8%AA-%D9%85%D9%86/ 
these are usually translated to the following ending characters that you
can see.

Encoding of these urls do not have any issues when I use the yourls
interface. (www.linkak.com/index.php). However, using the yourls plugin for
my wordpress blog, it gets to error. I guess there is a limit on the number
of characters for the URL.

These are the links that ended up having errors:

http://www.zoroastriannews.com/2009/09/02/%d8%a2%d9%8a%d8%a7-%d8%b3%d8%a7%d8%b3%d8%a7%d9%86%d9%8a%d8%a7%d9%86-%d8%a2%da%af%d8%a7%d9%87%d8%a7%d9%86%d9%87-%d9%87%d8%ae%d8%a7%d9%85%d9%86%d8%b4%d9%8a%d8%a
-> http://linkak.com/GW

http://sheida.com/2009/02/06/%da%a9%d8%b4%d9%81-%da%af%d9%88%d9%86%d9%87%e2%80%8c%d8%a7%db%8c-%d8%ac%d8%af%db%8c%d8%af-%d8%a8%d8%a7-%d8%a7%d8%b3%d8%aa%d9%81%d8%a7%d8%af%d9%87-%d8%a7%d8%b2-%da%af%d9%88
-> http://linkak.com/GL

I am using the latest version 3.1 RC.