Forgot to mention that performance wise, nvarchar could also have significant overhead in indexing, thus affecting your performance. Why? Again you are indexing a much bigger table because of the extra space required by the nvarchar datatype. Of course it all depends on your environment and a couple of other factors. Here's a good reference from Microsoft discussing the effect on performance and storage of Unicode
http://msdn.microsoft.com/en-us/library/ms189617.aspx