Due to the large numbers of Chinese websites and even those created by speculators at IDNFs, I think we can safely say that FTP is not a problem.
Mail has been supported for a while now. Office Outlook has been able to do these with support of the Verisign plug in for several years. Even with the release of IE 7.0 they will not be natively supported by most Microsoft applications until the release of Vista and the next generation of Microsoft Office.
Unfortunately, Microsoft have trailed in a pathetic last on the delivery for IDN, which has due to their market share has had a devastating impact on the IDN market to date. Even the intrasigent Gates, however, has belatedly recognised their importance, not just to the people of Asia, but to the survival of Microsoft. Do you seriously think Hu would have been the qudos of a visit if he continued to deny China what they most desire?
Clearly, the message has not got through even to many in the Internet Community, but all that is about to change. Within 3 years you will hardly see an ASCII URL for Asian Internet sites. Not only will China, Russia and the Arabic World have certainly converted, but I firmly believe India too will also be using local script URLS. Actually, you only have to look at the prices that English dot IN domains are fetching see that this market reality has already sunk in.