Web Service Error with Special characters (é, à)

Hi All,

I am facing issue in CRM interface which is connected to external system using a Web Service.Both systems exchange data in XML format which is happening fine.My process is to transfer the master data created in CRM to external system using that web service.This process is failing (i.e XML not flowing to external system) when my master data contains any special characters like this (é à ...).I am getting a 'XML parser error' as a response in CRM and in the external system these XML's are not reached/Updated.This behavior is only in Outbound Mode (i.e CRM to external system) whereas in Inbound Mode (external system to CRM) is working fine.

FYI - I am using UTF - 8 encoding in CRM. My Web service is a custom Web service.

Please let me know if you need any clarifications.

Your response is much appreciated!!!!!

Thanks in Advance!!!!!!!