encoding problem

Hi gurus

Why the delta decimal code value Δ does not give me the delta sign.  In my xml file, instead of displaying the delta sign it is giving me the decimal code Δ. 

Any help is very much appreciated!! 
Oliver

XML file: 
<?xml version='1.0' encoding='iso-8859-1'?> 
<?xml-stylesheet type='text/xsl' href='../chap1.xsl'?> 
<document id="DOCUMENT 1234"> 
  
<column1>(&#916;)</column1> 
  

XSL file: 
<xsl:stylesheet 
xmlns:xsl="http://www.w3.org/1999/XSL/Transform" 
version="1.0" 
xmlns:fo="http://www.w3.org/1999/XSL/Format" 
xmlns:func="http://www.exslt.org/functions" 
xmlns:date="java.util.Date" 
xmlns:format="java.text.SimpleDateFormat" 
exclude-result-prefixes="date format"> 

<xsl:template match="document"> 
   <fo:root> 
  
    <fo:layout-master-set> 
      <fo:simple-page-master 
    margin-right="1cm" 
    margin-left="1cm" 
    margin-bottom=".5cm" 
    margin-top="1cm" 
    page-width="21cm" 
    page-height="29.7cm" 
    master-name="Page1"> 
       <fo:region-before extent="1cm"/> 
       <fo:region-body margin-top="1cm" margin-bottom="1in"/> 
       <fo:region-after extent ="1cm"/> 
      </fo:simple-page-master> 
    </fo:layout-master-set> 

<!-- I am doin g a simple value select of the field --> 
<xsl:value-of select="column1"/> 



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