Running "msxml3_winetest domdoc" results in "loadXML failed".
The core reason for this seems to be that libxml2 needs the to be compiled with libiconv to be able to handle this character encoding.
Possible fix: import libiconv and enable it for libxml2.
Possible long-term fix: use ReactOS' own i18n. This could however require extensive surgery on libxml2, making it harder to the point of practically impossible to synch in the future.