http://bugs.winehq.org/show_bug.cgi?id=9726
--- Comment #29 from Dmitry Timoshkov dmitry@codeweavers.com 2007-09-24 07:17:53 --- The problem is here: LC_CTYPE=en_US.utf8 You need to set it to he_IL.utf8.
Not related to this bug, but something I find confusing: utf8 is not a correct charset name, UTF-8 is.