Here is the output of the processor with
non-printable
bytes output in \xAA format:
Output when xsl:output encoding="iso-8859-1":
<html>\x0Ahello_\xA0_world\x0A</html>
Output when xsl:output encoding="utf-8":
\xEF\xBB\xBF<html>\x0Ahello_\xC2\xA0_world\x0A</html>
The processor appears to be creating both iso-8859-1 and UTF-8 correctly.
Michael Kay