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The following minimal example omits the Croatian accented z/c from the author name in the compiled PDF.

\documentclass{article}
\usepackage{fontspec}
\usepackage[T1]{fontenc}
\usepackage[style=authoryear,firstinits,uniquename=init,natbib=true,backend=biber,indexing=true]{biblatex}

\addbibresource{Knezic.bib}
\begin{document}

\section*{\fullcite{Knezic2011}}

[...]

\printbibliography
\end{document}

where knezic.bib contains

@book{Knezic2011,
author={Knežić, D.},
year={2011},
title={Socratic Dialogue and Teacher-Pupil Interaction},
address={Hague, NL},
publisher={Eleven International Publishing}
}

i.e. PDF prints author as "D. Knei (2011) ..."

share|improve this question
4  
I can't test this right now, but you should save your files in UTF8 with XeLaTeX, and you should not use fontenc. – ienissei Mar 27 '12 at 8:45
4  
Move fontenc before fontspec (or don't load it at all). Perhaps you will additionally have to use a font which has your chars. – Ulrike Fischer Mar 27 '12 at 9:04
I'm using Eclipse and have saved both files as UTF8. YOur second comment is potentially useful. – DGarside Mar 27 '12 at 9:09
Re-ordering fontenc solved the issue. – DGarside Mar 27 '12 at 9:11

closed as too localized by Thorsten, lockstep, percusse, egreg, Joseph Wright Mar 27 '12 at 16:22

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