I solved this issue by myself. We decided to use the UTF-8 encoding for the xml and parsed it using the NSXMLParser. But before the parsing we did the following steps.
NSMutableURLRequest *request = [[[NSMutableURLRequest alloc] init] autorelease];
[request setURL:[NSURL URLWithString:@"http://the url for parsing"]];
NSHTTPURLResponse* urlResponse = nil;
NSError *error = [[NSError alloc] init];
NSData *responseData = [NSURLConnection sendSynchronousRequest:request returningResponse:&urlResponse error:&error];
NSString *result = [[[NSString alloc] initWithData:responseData encoding:NSISOLatin1StringEncoding] autorelease];
NSXMLParser *xmlParser = [[NSXMLParser alloc] initWithData:[result dataUsingEncoding:NSUTF8StringEncoding]];
Then after that some italian characters(3-4) were still causing problems and we manually replaced them after getting the result.
Now everything works fine.