Your source file may not be saved in UTF-8 (which is recommended when using special characters in the source), so the compiler may actually see a sequence of bytes that confuses it. You can verify that by opening your source file in a hex editor - the byte(s) you'll see in place of your character will likely be different.
If it's not already on, you can turn on that setting in Tools->Options->Documents in Visual Studio (I use 2008) - the option is Save documents as Unicode when data cannot be saved in codepage
.
Typically, it's better to specify special characters using a character sequence.
This MSDN article describes how to use \uxxxx
sequences to specify the Unicode character code you want. This blog entry has all the various C# escape sequences listed - the reason I'm including it is because it mentions using \xnnn - avoid using this format: it's a variable length version of \u
and it can cause issues in some situations (not in yours, though).
The MSDN article points out why the character assignment is no good: the code point for the character in question is > FFFF which is outside the range for the char type.
As for the string part of the question, the answer is that the SMP character is represented as two char values. This SO question includes some code showing how to get the code points out of a string, it involves the use of StringInfo.GetTextElementEnumerator