Answered my own question. Finally found the secret decoding configuration. In Windows Live Mail, select Options->Mail-, then on the Read tab click on Fonts. Select Unicode for the font and then Unicode (UTF-8) for Encoding.
As I found variability from email app to app, it seems it might be a good idea to allow configuration of encoding. Dunno... maybe UTF-8 is pretty standard these days. Anyway, there it is.
Bruce