Adobe Designer 7.0 - XML parsing error when data connection to XML with UTF-16

[#1]

Hi all
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<br />I need to change my data connection xml file to use UTF-16 instead of ISO-8859-1. When I connect the file with the UTF-16 encoding, I receive the following error
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<br />Invalid XML: Xml parsing error: encoding specified in XML declaration is incorrect (error code 19) ..
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<br />The XML declaration is:
<br /><?xml version="1.0" encoding="utf-16"?>
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<br />I am able to succesfully set the encoding to "UTF-8". UTF-16 should also be possible.
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<br />Has anyone seen this error before ? How can I resolve this ?
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<br />Thanks in advance
<br />
<br />Bilal Haniff