Multibyte output

I am getting really strange output from this XSL transform.

The output  *looks* perfect - however, each character looks as though it was
prodced in UTF-16 (each char is represented in two byes with a leading 00
byte).  Also, the files begins with a char 127 and char 126???  I explicitly
set the encoding to UTF-8 but it still doesn't work.  Trying to save the
output as a ".sql" and then ruunning it in sqlplus fails.

Anyone have any ideas?  

The XSL follows:

<?xml version="1.0" encoding="UTF-8"?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="text" indent="no"/>
<xsl:variable name="digits" select='-01234567809'/>
<xsl:template match="Import">
	<xsl:text></xsl:text>
	<xsl:for-each select="Row">
		<xsl:text>&#10;</xsl:text>
		<xsl:text>insert into customer_0_A (</xsl:text>
		<xsl:for-each select="*">
			<xsl:value-of select="name(.)"/>
			<xsl:choose><xsl:when
test="position()!=last()"><xsl:text>,</xsl:text></xsl:when></xsl:choose>
		      	<xsl:text>&#10;</xsl:text>
		</xsl:for-each>	
		<xsl:text>) &#10; values (</xsl:text>	
		<xsl:for-each select="*">
		      <xsl:choose>
		     		<xsl:when
test="not(contains($digits,substring(normalize-space(.),1,1)))">
		     		<xsl:text>'</xsl:text>
		     		</xsl:when>
		     	</xsl:choose>
			<xsl:value-of select="."/>
		      <xsl:choose><xsl:when
test="not(contains($digits,substring(normalize-space(.),1,1)))"><xsl:text>'<
/xsl:text></xsl:when></xsl:choose>
		      	<xsl:choose><xsl:when
test="position()!=last()"><xsl:text>,</xsl:text></xsl:when></xsl:choose>
		      	<xsl:text>&#10;</xsl:text>
		</xsl:for-each>	
		<xsl:text>); &#10;</xsl:text>		
	</xsl:for-each>		
</xsl:template>
</xsl:stylesheet>

The transform takes the XML (at bottom) and produces insert statements
for Oralce.

The only thing that made this tough was trying to figure out how/when to put
quotes around strings :-)


A snippet of XML file:

<!-- edited with XML Spy v4.3 U (http://www.xmlspy.com) by Cutler, Dan
(private) -->
<?xml-stylesheet type="text/xsl" href="C:\TEMP\CME\test_data_import.xsl"?>
<Import>
	<Row>
		<CUSTOMER_KEY>2</CUSTOMER_KEY>
		<_DATE_MODIFIED>  sysdate</_DATE_MODIFIED>
		<_LATEST_FLAG> 1</_LATEST_FLAG>
		<_NAME_FIRST>Joe</_NAME_FIRST>
		<_NAME_LAST>Bloe</_NAME_LAST>
		<_GENDER>Male</_GENDER>
		<_TITLE>UNKNOWN</_TITLE>
		<_ADDRESS>UNKNOWN</_ADDRESS>
		<_CITY>UNKNOWN</_CITY>
		<_STATE_PROVINCE>UNKNOWN</_STATE_PROVINCE>
		<_ZIPCODE>UNKNOWN</_ZIPCODE>
		<_COUNTY>UNKNOWN</_COUNTY>
		<_COUNTRY>UNKNOWN</_COUNTRY>
...
        </Row>
</Import>