Question about prettyprinting Docbook documents and character entities

[Taro Ikai <tikai@ABINITIO.COM>]

I am having a few problems prettyprinting my Docbook documents. I am using 
Cygwin distribution of Tidy.

1) Tidy seems to translate the character entities:

   into a two-byte sequence of 0x20, 0x02, and 
   into a two-byte sequence of 0x20, 0x03

Is this expected? I want to keep the &entityname; notations in the output. 
How can I do this?

2) Tidy fails to produce any output with Japanese UTF-8 encoded documents.

Is there another tool I can use to prettyprint XML? 

Also, if there are any tried&true rules about how to format XML documents 
so that they are 
easy to diff between versions, merge using source code control systems, 
etc., I'd appreciate
your input.

Thank you in advance.

Taro Ikai