Set-Content -Encoding parameter matters, if the content says so...

I use a simple PowerShell script to replace some of the URLs in my blog post's html source before I publish them to www.tellingmachine.com. In my case the posts are stored as XML files. Usually I use Windows Live Writer to write my posts. I publish the documents for test purposes frequently during the authoring to the VisualStudio 2008 development web server that runs locally on my machine. Once the post is ready to put online, I take the XML file, run the PowerShell script against it and then copy it to my production server. Occasionally the XML files refuse to open in Internet Explorer after I ran the script. It took me few minutes to figure out why. Here is the story!