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Yeah, happened to me with joker (German) and nominalia (Spanish) in 1999, when NetSol lost their monopoly and euro registrars didn't follow NetSol's ban on the seven dirty words. They both screwed up a ton of registrations, probably bilked me for a couple thousand bucks in registrations they approved then revoked (like you described) that I never could get refunded, and I still have domains with Joker that I can't access because of their screwed up database errors and impossible authentication policies. I figure one day I'll go to Germany with a passport, birth certificate, and a big sack of fecal samples to try and convince them to transfer the domains out.
I don't know what it is about euro registrars, but I would never choose to use them unless there were no alternatives, as with your situation getting umlauted .biz domains. Maybe US companies are easier to negotiate with to resolve problems reasonably, since there's always looming lawsuit potential if they're unreasonable.
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