Index: lib/builder/xmlbase.rb
===================================================================
RCS file: /var/cvs/builder/builder/lib/builder/xmlbase.rb,v
retrieving revision 1.4
diff -u -r1.4 xmlbase.rb
--- lib/builder/xmlbase.rb	31 Jan 2006 00:18:46 -0000	1.4
+++ lib/builder/xmlbase.rb	10 May 2006 17:38:42 -0000
@@ -19,9 +19,10 @@
     #           indentation and no line breaks).
     # initial:: Level of initial indentation.
     #
-    def initialize(indent=0, initial=0)
-      @indent = indent
-      @level  = initial
+    def initialize(indent=0, initial=0, encoding='utf-8')
+      @indent   = indent
+      @level    = initial
+      @encoding = encoding
     end
     
     # Create a tag named +sym+.  Other than the first argument which
@@ -113,7 +114,11 @@
     
     require 'builder/xchar'
     def _escape(text)
-      text.to_xs
+      if @encoding == 'utf-8':
+        text.to_xs
+      else
+        text
+      end
     end
 
     def _escape_quote(text)
Index: lib/builder/xmlmarkup.rb
===================================================================
RCS file: /var/cvs/builder/builder/lib/builder/xmlmarkup.rb,v
retrieving revision 1.6
diff -u -r1.6 xmlmarkup.rb
--- lib/builder/xmlmarkup.rb	30 Mar 2006 19:14:27 -0000	1.6
+++ lib/builder/xmlmarkup.rb	10 May 2006 17:38:42 -0000
@@ -240,6 +240,7 @@
       if directive_tag == :xml
 	a = { :version=>"1.0", :encoding=>"UTF-8" }
 	attrs = a.merge attrs
+        @encoding = attrs[:encoding].downcase
       end
       _special(
 	"<?#{directive_tag}",
Index: test/testmarkupbuilder.rb
===================================================================
RCS file: /var/cvs/builder/builder/test/testmarkupbuilder.rb,v
retrieving revision 1.7
diff -u -r1.7 testmarkupbuilder.rb
--- test/testmarkupbuilder.rb	31 Jan 2006 00:18:50 -0000	1.7
+++ test/testmarkupbuilder.rb	10 May 2006 17:38:42 -0000
@@ -441,3 +441,26 @@
   end
 
 end
+
+class TestXmlChar < Test::Unit::TestCase
+  def setup
+    @xml = Builder::XmlMarkup.new(:indent=>2)
+  end
+
+  def test_source_utf_8_target_utf_8
+    @xml.foo "\xC2\xA9"
+    assert_equal "<foo>&#169;</foo>\n", @xml.target!
+  end
+
+  def test_source_iso_8859_1_target_utf_8
+    @xml.instruct! :xml, :encoding=>'utf-8'
+    @xml.foo "\xA9"
+    assert_equal "<?xml version=\"1.0\" encoding=\"utf-8\"?>\n<foo>&#169;</foo>\n", @xml.target!
+  end
+
+  def test_source_iso_8859_1_target_iso_8859_1
+    @xml.instruct! :xml, :encoding=>'iso-8859-1'
+    @xml.foo "\xC2\xA9"
+    assert_equal "<?xml version=\"1.0\" encoding=\"iso-8859-1\"?>\n<foo>\302\251</foo>\n", @xml.target!
+  end
+end