deployment error

I'm trying  to deploy jlcp in jboss-3.2.1 but I get an error "invalid 
encoding name Cp1252" in application.xml. This is the encoding used in 
application.xml which from what I've found out Xerces doesn't accept. 
When I change the encoding to utf-8 and try to re-compile the ear file 
during the compilation the encoding gets changed back to Cp1252. Any 
ideas why this is happening? Has anyone else ran into this problem?