Thanks Mike. Reading further into that page, it looks like the identifer bytes at the start of UTF format text are optional:
"The Unicode standard states, The UTF-16 encoding scheme may or may not begin with a BOM. However, when there is no BOM, and in the absence of a higher-level protocol, the byte order of the UTF-16 encoding scheme is big-endian."
The first byte is hex 3c which is ascii "<" which would make me think it's correct XML.
Thanks for looking into UTF-16 support, it's appreciated that you are fast moving with regards to user requests and problems.