I felt comfortable with the author's commitment to this software and decided to be a guinea pig after a prompt and thorough email reply from the author. Paid on Kagi and received a SN immediately. Installed the software, activated and saved for Simplified Chinese encoding. As the number of Address Book contacts with Chinese were already in the form <String unprintable> and likely have already "screwed", I just went ahead with a Hotsync without setting for overwritting in any direction. Well, it worked. Chinese characters in a number of my entries displayed properly on the Palm and Mac. I then tested Chinese character entries on either side and the transfers in either direction were also successful through further Hotsyncs. Despite the very short period of ownership and testing (1 hours and 4 Hotsyncs), I am very happy to see this iSync encoding problem finally solved by this software!

The only curious issue is the alphabetical ordering of contact entries in my Palm's addressbook. Those with Chinese characters (in "note" fields) are no longer in regular English alphabetical order by Surname. Kinda odd that the search function in my Palm's addressbook would not recongize those modified entries. But I'll need to further investigate this issue.

My setup:
OS X 10.3.5 (PB G4 12")
iSync (1.5 v139)
Apple Addressbook (Chinese entries in the Note fields only, otherwise in English)
Mark Space MissingSync 4.0.2b3
Palm Tungsten T2 (OS 5.2.1)
CJKOS 4.61 (Simplified Chinese GB2312 encoding)