1. Yeah,  my fault. Silly mistake, I'll upload fixed version in a minute.

2. You get 437 encoding because you output to the console. In this case nxslt outputs using console's encoding otherwise you can get unreadable result.  When outputting to a file (-o res.xml) you should get proper encoding.

That was actually done quite recently per a request from a user. Do you think it's wrong?

Well, overriding output serialization properties is an interesting idea and that's pretty much doable.

While I'm not sure about outputting to console. The idea was that when a user outputs to the console, she wnats to see the results and so encoding should be adjusted for proper viewing. Perhaps I should introduce another command line option for encoding and if it's specified use it for outputting to a file or console.