XML Encoding Problems

I am merging two xml files together using an xsl script, all the files are
encoded as UTF-8

But the resulting file is being changed to UTF-16, in the XSL file I am
setting the encoding to UTF-8 which works fine in the editor I am using but
not when I run it through Delphi 5.

Has anyone any ideas as to why it is being changed?  Or how to stop it?

I have gotten a function of a site that I use to run the XML and XSL files, if this will be needed to help in the solution let me know and I'll post it up.

Thanks in advance
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replacement part #xm34
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