You have to set three things right:
1)keyboard layout
2)correct font
3) Locale settings, and I think that one is missing in your case
Try setting [EMAIL PROTECTED] locale or sr_YU.UTF-8 locale. I beleive it will not stop you typing hungarian texts in X.
You should also try to use unicode fonts, and apps that support them (OO an Gedit for instance).
Sarge and Ubuntu are first linux distros/versions where I have managed
to use both cyrillic and latin characters normally, with gnome (have
problems with KDE), UTF-8 locale settings, and unicode fonts.
