After running into problems with collation again, decided to delve deeper into collation. So What does SQL server use collation for? It uses collation to determine how non-Unicode character data is stored and how to sort and compare Unicode and non-Unicode date.
So if all character data is stored as Unicode, does this circumvent any potential collation problems in SQL server? According to this article from MSDN this is precisely the way to avoid this:
The easiest way to manage character data in international databases is to always use the Unicode nchar, nvarchar, and ntext data types in place of their non-Unicode equivalents (char, varchar, and text). If all the applications that work with international databases also use Unicode variables instead of non-Unicode variables, character translations do not have to be performed anywhere in the system. All clients will see exactly the same characters in data as all other clients.
SQL Server
collation