Deep down in the Java-API:

http://java.sun.com/javase/6/docs/api/java/io/FileWriter.html

Convenience class for writing character files. The constructors of this class assume that the default character encoding and the default byte-buffer size are acceptable. To specify these values yourself, construct an OutputStreamWriter on a FileOutputStream.

So, if you want to write you XML-Document to a file, for the love of god, don’t use the FileWriter like this:

        BufferedWriter bufout = new BufferedWriter(new FileWriter(OUTFILE));
        bufout.write(out);
        bufout.close();

or you might end up with an XML-file that has a UTF-16 header (encoding="UTF-16") but is encoded completely differently (plain ASCII?! Not sure…).

Insted, use

                OutputStreamWriter out = new OutputStreamWriter(new FileOutputStream(OUTFILE),"UTF-16");
                out.write(s);
                out.close();

Resources:
http://www.malcolmhardie.com/weblogs/angus/2004/10/23/java-filewriter-xml-and-utf-8/