Datawindow Importfile error - German characters

Hi Guys

I'm getting the following error when importing a file that contains German characters in the XML. The data is "Rüggesiek 9", it contains a umlaut (sp?) the message says it has exceeded the bytes limits because the letter is a 6-byte sequence?

I have a similar problem with a Spanish character "add3 - 1º 3º", the degree symbol is giving an error

The XML is formatted thus:

<Address2><![CDATA[Rüggesiek 9]]></Address2>

<Address3><![CDATA[add3 - 1º 3º]]></Address3>

With encoding as: <?xml version="1.0" encoding="UTF-8" ?>

My guess is an encoding problem but not sure what to change......

Apart from removing these characters I cannot see a way to load them into the DW, any help appreciated

Cheers

David