Hyperref: Scandinavian characters (æø) don't work in url, hyperlink is wrong

Background

A while ago it became possible to use the letters æ, ø and å in URLs, and some websites, like the encyclopaedia Store Norske Leksikon, has made use of this.

Recently, a question was posted on a Norwegian forum about creating a hyperlink to such an URL, something that doesn’t work, at least not with æ and ø.

An example

documentclass[a4paper]{article}
usepackage[utf8]{inputenc}
usepackage[T1]{fontenc}
usepackage{lmodern}

usepackage{hyperref}

begin{document}
url{http://snl.no/øl} 
url{http://snl.no/ære} 
url{http://snl.no/Ål}
end{document}

The first two links do not work, they are printed as http://snl.no/T1ol and http://snl.no/T1aere, but the third one works as it should.

(One can get the correct URL printed by using the href command, but as the hyperlink is still wrong, that isn’t really a solution.)

The question

I assume this has something to do with how hyperref handles non-english characters. Is there some way of making hyperref create a correct link with æ or ø in the url?

Update

By using the href command, and compiling with latex and the dvipdfm, the hyperlink is correct (see gerry’s answer below). I’ve been compiling with pdflatex.

documentclass[a4paper]{article}
usepackage[utf8]{inputenc}
usepackage[T1]{fontenc}
usepackage{lmodern}

usepackage{hyperref}

begin{document}
href{http://snl.no/øl}{http://snl.no/øl}   href{http://snl.no/ære}{http://snl.no/ære}    href{http://snl.no/Ål}{http://snl.no/Ål}
end{document}

documentclass[a4paper]{article}

usepackage[utf8]{inputenc}
usepackage[T1]{fontenc}
usepackage{lmodern}

usepackage[]{hyperref}

begin{document}
  href{http://snl.no/%C3%B8l}{http://snl.no/øl} 
  href{http://snl.no/%C3%A6re}{http://snl.no/ære} 
  href{http://snl.no/%C3%85l}{http://snl.no/Ål}
end{document}

documentclass{article}

usepackage[T1]{fontenc}
usepackage[utf8]{inputenc}
usepackage{hyperref}

begin{document}
  href{detokenize{http://snl.no/øl}}{http://snl.no/øl} 
  href{detokenize{http://snl.no/ære}}{http://snl.no/ære} 
  href{detokenize{http://snl.no/Ål}}{http://snl.no/Ål}
end{document}