No UTF8 charset in MSXML3?

Hi.

I've converted a Latin-1 document to UTF8 encoded XML.
Both the document and stylesheet declare it to be UTF8.
When I process through JAXP/Xalan, all is well; when 
I use MSXML3, "unusual" UTF8 characters are replaced
by a square-shaped character.

Does this sound familiar?  Is it simply a matter of fonts,
or is there something more sinister going on?

Any help much appreciated.
Thanks in anticipation,

Lee

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