UTF-8 to ASCII encoding problem

I have a strange encoding problem that I cannot understand.  I have what I
hope is an identical java/XSLT environment on two platforms  one Windows,
the other Linux.  I am using java 1.4.2.

I receive documents in UTF-8 which may contain pound signs correctly
encoded as &163;. I need to style these into ASCII and so my style sheet
defines the output encoding -   <xsl:output method="xml" indent="yes"
encoding="ISO-8859-1"/>.

On the Windows platform this works fine, but on the Linux platform, it
generates the sequence EF BF BD which I think represent the fact that it
couldnt recognize the pound sign.

What have I mis-configured/mis-installed on the Linux platform for this to
happen?

John


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