GoDaddy now allows IDN registration
Looking for a domain name expressed in a foreign language? With GoDaddy’s Internationalized Domain Name search capabilities, you can register .COM and .NET domain names in over 100 native languages (non-ASCII characters) such as Chinese, Japanese and Arabic or in standard ASCII character format. For example: пустыня (Russian word for “desert”) is equivalent to xn--m1adged4c3a in ASCII.
Start your Internationalized Domain Name Search with GoDaddy:
http://www.godaddy.com/gdshop/registrar/idn.asp