Apache Xalan 2.2 for Java problems with Unicode

I'm trying to transform an XML file (encoded in UTF-8) using Apache's Xalan
2.2 package for Java.  It gives me the following exception:

javax.xml.transform.TransformerException: An invalid XML character (Unicode:
0xfc) was found in the element content of the document.

Has anyone experienced this?  Unicode 0xFC is a lowercase 'u' with an umlaut
(ü).  It works fine when I remove those characters.  Is there a way to set
the encoding for the Transformer object in Java or something like that?

Here is the relevant Java code where intermediateFile is the XML file and
returnFile is a blank File object to which the HTML is written:

      System.out.println("Beginning XSL transformation of page
#"+pageID+".");
      TransformerFactory tFactory = TransformerFactory.newInstance();
	    Transformer transformer = tFactory.newTransformer(new
StreamSource("D:\\tempDirectory\\story.xsl"));
      StreamSource streamSource = new StreamSource(intermediateFile);
      StreamResult streamResult = new StreamResult(new
FileOutputStream(returnFile));
    	transformer.transform(streamSource, streamResult);
      streamResult.getOutputStream().close();
      System.out.println("XSL transformation of page #"+pageID+"
completed.");

Thanks in advance,

Jamie


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