Testing on Windows XP with the attached program, at a command prompt, this
chcp 1252
german.exe
outputs
Unzulässige gelöscht
(on English Windows, a command prompt uses codepage 437 by default, which doesn't display non-ASCII characters properly).
and running the program from Visual Build (visbuildpro, and visbuildcmd from a command prompt set to codepage 1252) has the same result.
Maybe xcopy on German Windows is using a different codepage, or is your installation set to a non-standard codepage?
http://msdn.microsoft.com/en-us/goglobal/bb964654.aspx