Looking at the script code, I think that must mean it didn't understand the contents of the MSN log files. There are more than 10 different binary formats that I've seen for them, and even more variants based on country. It would take a fair amount of time to make sense of it, and unfortunately I don't have that at the moment. Apologies.

Unfortunately, the script is a relic from a time long since past. Microsoft updated the binary format of their chat transcripts several years ago, rendering this converter inoperable. And as you have just discovered, it no longer even runs on Snow Leopard.

Yes. That symbol is called diesis, it's coming up because of the way Applescript interprets non standard characters in MSN logs.
http://en.wikipedia.org/wiki/Dagger_%...pography%29

I had a bunch of those come up in my conversion and basically ignored them. Seemed to convert fine. But I'll alert the coder.