[eluser]fensen[/eluser]
Have you tried converting the string from/to multi byte
This converts Japanese SHIFT-JIS to UTF-8
$a = mb_convert_encoding($txt, "UTF-8", "SJIS");
your string doesn't look like SHIFT-JIS, so maybe you should try other encodings (have a look at the manual).
By the way, do you know if your XML string may be Japanese, Korean, or any other language?