Maybe this is an encoding issue? I can't imagine that you have to replace every non standard character.
Example XML:
<?xml version="1.0" encoding="utf-8"?>
<client>
<achternaam>Erriëns</achternaam>
</client>
With or without the first line doesn't matter.
Error in IE8:
The XML page cannot be displayed
Cannot view XML input using XSL style sheet. Please correct the error and then click the Refresh button, or try again later.
--------------------------------------------------------------------------------
An invalid character was found in text content. Error processing resource 'file:///C:/Users/******/SO.xml'. Line ...
<achternaam>Erri
Excel doesn't like the ë either.