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I suspect you will need to pay attention to the document encoding, and save your own document in the same format.
<?xml version="1.0" encoding="utf-8"?>
eBay's FileExchange uploader has had difficulty with extended characters as well, since the Excel spreadsheet did not originally support a clean (DOM-free) UTF-8 and had to be uploaded as ISO-8859-1 or as CP1252. I presume the XML uploader would just be a matter of saving your XML text file in the same format your encoding states.
