Have you converted your property file before deployment of the zimlet? there's a bug with yui compressor in ZCS RC1,you can check it's changelog:
Quote:
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+ Do not convert \uXXXX and \xXX escape sequences to their unicode equivalent.
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what's more, if you use latest yui compressor,you have to change some codes,because yui compressor api has changed a bit.
cheers
Darren.