Well any case, Delphi 7 does not support unicode in the way it is needed for display purposes.
However, since this is just a parser, I have made it work to replace the text properly. The reason it wasnt replacing “ was because it was the 1 byte ansi and not the 3 byte unicode... I did not save my batch file as a UTF8 file hence the issue.
The next version will allow it since it deals with the BOM too which 1.0 does not. In fact after hours of testing and thinking, I found out it was already working as it should apart from that.