When writing XML, all text should be converted to UTF8 if it's not coming from a known source. This blog post provides a ruby function to do the conversion.
The Absolute Minimum Every Software Developer Absolutely, Positively Must Know About Unicode and Character Sets (No Excuses!)
So I have an announcement to make: if you are a programmer working in 2003 and you don't know the basics of characters, character sets, encodings, and Unicode, and I catch you, I'm going to punish you by making you peel onions for 6 months in a submarine.