To reproduce this issue you need a clean installation (from scratch, no additional components installed, no Indy update) of C++ Builder 2010 or XE. It uses Indy 10.5.5 (with 2010) or 10.5.7 (with XE). Note: although it uses Indy to reproduce the issue, the version of Indy and Indy itself is not the one that causes this problem but the linking of C++ binary probably.
Steps to reproduce:
1. Create a simple text file with the following content. Save it as "file.txt" or any other name. It can be also full email message but the text below is enough.
2. Create a new VCL (C++ Builder) application and drop Memo, Button and IdMessage to the form
3. In OnClick event for button load the above file like this:
Memo1->Text = IdMessage1->Subject;
4. When the program is built statically ("Build with runtime packages" unchecked) the letters are not decoded properly. šđčćž ŠĐČĆŽ and some others depending on version of Windows should decode improperly.
5. On XE the same applies for both static or dynamic builds (with default installation and no Indy update).
6. Try the same with Delphi 2010 application or Delphi XE application - the letters are decoded properly as they should be.
See the following screenshots for expected / unexpected output produced: