I don't think that the fo declaration is related to your problem other
than the fact that if you take it out your stylesheet is not
namespace-well-formed so does not compile, so processing stops there
before trying to parse the input, which masks an error in the input.
The parser is telling you that it was expecting a utf8 file as input but
that the incoming bytes can't be decoded as utf8. The most likely reason
is that that is true:-) Without seeing your input file, hard to guess
what is wrong.
David
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