Meaning of TO-LOCAL-FILE
For R3 Unicode, we need to more precisely define a few functions. One of those is to-local-file -- used to convert file names from REBOL format to the local OS format.
Specifically, if we want to-local-file to return a string (given a file datatype), then that string remains in REBOL's internal format, not the OS native format (e.g. wide-chars on Win32 and UTF8 on Linux).
So, when we say to-local-file we only mean the higher level conversion of the string, not the lower level encoding of the filename. That encoding must occur later, such as when the file is opened for read or write.