I found that LaTeX chokes on certain non-ASCII identifiers in \ref.
This works fine:
\documentclass{scrartcl}
\usepackage[ngerman]{babel}
\usepackage[utf8]{inputenc}
\usepackage[T1]{fontenc}
\begin{document}
\section{Foobär}
\label{sec:Foobär}
See \ref{sec:Foobär}
\end{document}
The same thing with "Barbaß" instead of "Foobär" aborts with "Missing \endcsname inserted." (huh?).
Now, the naive sollution would be "don't use non-ASCII identifiers", of course. But since I'm using some macro magic to get labels auto-defined by section headers / table captions, as well as generating some surrounding text for references, I would really like to use native language in labels, instead of crimping them into ASCII-7.
Any way to get this done?

Barbaßworks with XeLaTeX and LuaLaTeX. – Qrrbrbirlbel Jan 14 '13 at 10:39\labeland of\refto\detokenizethere isn't much you can do with standard LaTeX. – egreg Jan 14 '13 at 11:03