That the kind of character you see when you're not playing the game with Japanese setting.
So there must be some kind of problem with your Japanese emulation.
From experience, NTLEA don't work well with wolf rpg - forget it.
However, local emulator should work.
So first thing, check that you got the Asian language pack properly installed -> go to the window language window and see if you can switch non unicode to Japanese (no need to do it). if Japanese is in the list, that's good. Else, the Japanese language isn't installed on your window.
If the first check is ok, maybe your version of local emulator didn't install correctly. Try deleting it and reinstalling the latest version. Than make sure the setting used are Japanese local.