Frontier::Daemon encoding question

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hi guys,
I've written an XMLRPC server using the Frontier suite,
exporting one function which retrieves a row of info from a MS-SQL
database. The server is running on WinXP and the DB is on Win2000.
one of the field is an encrypted credit-card number.

the client and server executes correctly until the Frontier::Client is
trying to parse the XML. this is the error I get:

not well-formed (invalid token) at line 7, column 41, byte 272 at
C:/Perl/site/lib/XML/ line 187

this location points to the value of the encrypted CC.
I've read that by setting the encoding of the XML to ISO-8859-1 someone
solved a similar issue: +(invalid+token)

however, even when I set the encoding at the client side it will not
work. I'm thinking it may be a good idea to set the encoding to the
aformentioned ISO-8859-1, but that option is not available with the
Daemon class nor the HTTP::Daemon from which it inherits.

besides solving this matter - there must be something in this mechanism
that I'm not fully understand.. I mean, the client transfers a chunk of
characters to the XML parser for it to be decoded right?  the
XML::Parser is used by default and it has a set of rules by which it
will parse information, but I cannot modify that with the
Frontier::Client, can I?

last Q,
any book, article u recommend for me to read in order to get the nuts
and bolts of XML?

thank you all for your time and god bless

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