>Disconnected from IRC (Can't resolve bind hostname. Try /znc ClearBindHost and /znc ClearUserBindHost). Reconnecting...
æ is the character that makes it unresolvable, changing it to xn--6ca solves it. So the issue as far as I can tell is that punycode is unsupported in client host names
I am getting 'unable to resolve host' when connecting to Unrealircd with the character æ in the host; is it possible you'll add support for æøåÆØÅ in hostnames? it's Danish characters..