diff --git a/wxPython/wx/tools/XRCed/globals.py b/wxPython/wx/tools/XRCed/globals.py
index d99e823523..aa40525283 100644
--- a/wxPython/wx/tools/XRCed/globals.py
+++ b/wxPython/wx/tools/XRCed/globals.py
@@ -15,7 +15,7 @@ import sys
 # Global constants
 
 progname = 'XRCed'
-version = '0.1.7-2'
+version = '0.1.7-3'
 # Minimal wxWindows version
 MinWxVersion = (2,6,0)
 if wxVERSION[:3] < MinWxVersion:
diff --git a/wxPython/wx/tools/XRCed/xrced.py b/wxPython/wx/tools/XRCed/xrced.py
index 853c0abe96..461a72dbd4 100644
--- a/wxPython/wx/tools/XRCed/xrced.py
+++ b/wxPython/wx/tools/XRCed/xrced.py
@@ -416,7 +416,11 @@ class Frame(wxFrame):
         xxx = tree.GetPyData(selected)
         if wx.TheClipboard.Open():
             data = wx.CustomDataObject('XRCED')
-            data.SetData(cPickle.dumps(xxx.element.toxml()))
+            # Set encoding in header
+            # (False,True)
+            s = (xxx.element.toxml(encoding=g.currentEncoding),
+                 xxx.element.toxml())[not g.currentEncoding] 
+            data.SetData(cPickle.dumps(s))
             wx.TheClipboard.SetData(data)
             wx.TheClipboard.Close()
             self.SetStatusText('Copied')
@@ -588,7 +592,10 @@ class Frame(wxFrame):
         if evt.GetId() == wxID_CUT:
             if wx.TheClipboard.Open():
                 data = wx.CustomDataObject('XRCED')
-                data.SetData(cPickle.dumps(elem.toxml()))
+                # (False, True)
+                s = (elem.toxml(encoding=g.currentEncoding),
+                     elem.toxml())[not g.currentEncoding] 
+                data.SetData(cPickle.dumps(s))
                 wx.TheClipboard.SetData(data)
                 wx.TheClipboard.Close()
             else: