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The validator does not support Internationalized Domain Names (IDNs), but should do so. IDNs have been standardized by the IETF in 2003, and an update (mostly irrelevant for implementation in the validator) is underway now. As a simple example, http://validator.w3.org/check?uri=http://www.ietf.org/ validates http://www.ietf.org/. Likewise, http://validator.w3.org/check?uri=http://恵比寿駅.jp/ should validate http://恵比寿駅.jp/.
*** This bug has been marked as a duplicate of bug 5225 ***