character entities generated when method=html

[se...@us.ibm.com]

I am having a problem with Shift_JIS characters being replaced with
character entities like ˆ when I use

<xsl:output method="html"/>

in a stylesheet.  Of course with xsl:output method="xml" or xsl:output
method="text" the substitution does not occur, but then the generated HTML
is not what we want.  Is there anyway in XALAN to either tell it not to do
these substitutions or intercept them?

A brute force way to handle this would be to find all these characters
ahead of time and change them to numeric entities (&#...), but I don't
think that is a realistic approach.

Any ideas how to handle this problem.

Thanks in advance.

Chris Seekamp