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Visual Basic >> invalid character

Sir we have a problem with pound character.

We are using MSXML 8.0.7002.0 (Windows XP) when it loads the xml it throws
error invalid character.

If we have encoding="ISO-8859-1" it works fine.

But my question is in Windows 98 we are using MSXML 5.00.2614.3500. It was
worked fine when i was loading the xml.

What could be the reason it has worked in windows 98 and not working in
windows XP.

Kindly request you to help me... As we are migrating from windows 98 to
windows XP.

Visual Studio90