DOCBOOK-APPS: openjade turns ° into °

I am publishing documents with DocBook XML 4.1.2 with OpenJade 1.3 and the 
good ol' nwalsh dsssl stylesheets 1.76, all on MacOS X 10.1. My 
environment has:
export SP_ENCODING='XML'
export SP_CHARSET_FIXED='YES'

My problem is:

If I use the ° entity in file.xml and generate html with the command:

openjade -V nochunks -t sgml -d path/to/html.dsl /path/to/xml.dcl foo.xml 
 > foo.html

And I look at file.html in Netscape, the degree symbol appears with a 
strange character in front of it, ° However, when I switch 
Netscape's encoding to UTF-8, the  disappears and the degree symbol 
looks normal. So, OpenJade is generating output in UTF-8, no?

But, my problem is that my audience may not be savvy enough to figure out 
to change their browser's encoding to UTF-8. So, they will see the 
unexpected character. My solution is to manually delete the  This 
solution may not scale to larger projects, so my question is: how do I 
OpenJade to generate output with the ° transformed into the named 
entity ° and not into the UTF-8 character for the degree symbol itself?

Wow, I hope this question makes sense to someone.

thanks,

s

--
Sasha Zucker

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