URLLoader, response with swedish letters (åäö)

Hey!
I’m trying to read data from a webservice that returns an XML response.

I am using the following code for that:

        
private function NewWordRequest(Letters:String, Contains:String, BeginsWith:String, EndsWith:String):void
        {
            var requestVars:URLVariables = new URLVariables();
            requestVars.Word = Letters;
            requestVars.Contains = Contains;
            requestVars.BeginsWith = BeginsWith;
            requestVars.EndsWith = EndsWith;

            var request:URLRequest = new URLRequest("http://localhost:12459/ScrabbleSolver.svc/post");
            request.method = URLRequestMethod.POST;
            request.data = requestVars;

            request.cacheResponse = false;

            //Initiate the request 
            var requestor:URLLoader = new URLLoader();
            requestor.dataFormat = URLLoaderDataFormat.TEXT;
            requestor.requestor.addEventListener( Event.CHANGE, loadListener);
            requestor.addEventListener( Event.COMPLETE, xmlRPCRequestComplete );
            requestor.addEventListener( IOErrorEvent.IO_ERROR, xmlRPCRequestError );
            requestor.addEventListener( SecurityErrorEvent.SECURITY_ERROR, xmlRPCRequestError );
            requestor.load( request );
        }

When debugging the webservice the swedish letters from flash are being sent correctly to the service but when comming back and tracing the response I get something like this:

<ArrayOfPossibleWord xmlns="http://schemas.datacontract.org/2004/07/ScrabbleSolver" xmlns:i="http://www.w3.org/2001/XMLSchema-instance">
<PossibleWord><Score>12</Score><Word>&#65533;&#65533;&#65533;</Word></PossibleWord>
<PossibleWord><Score>9</Score><Word>&#65533;s&#65533;</Word></PossibleWord>
<PossibleWord><Score>7</Score><Word>&#65533;das</Word></PossibleWord>
<PossibleWord><Score>7</Score><Word>d&#65533;sa</Word></PossibleWord>
<PossibleWord><Score>7</Score><Word>&#65533;das</Word></PossibleWord>
</ArrayOfPossibleWord>

There are ? were there is supposed to be either å ä or ö from the swedish alphabet.
Is there a way to change encoding standards or something in flash?

What encoding does flash expect?