problem with caracteres speciaux

[abbouh <ab...@ra...>]

i use in my FS:

<?xml version="1.0" encoding="ISO-8859-1"?>
<xsl:stylesheet version="1.0"
xmlns:xsl="http://www.w3.org/1999/XSL/Transform">
<xsl:output method="text" version="1.0" encoding="ISO-8859-1"
indent="yes" />
----------
---------
<xsl:value-of select="./para"/>
--------

and in my xml file un have:
<?xml version="1.0" encoding="utf-8"?>
<!DOCTYPE dicodoc PUBLIC "-//ALCATEL//DICODOC 2.0//EN"
 "dicodoc.dtd">
--------
<para>...G&eacute;n&eacute;ralit&eacute;s</para>
------

and in the output file  i have:
...G n ralit s

so the character &eacute; isn't translated.
so which encoding i should have for output,stylsheet,or what the problem