I'm thinking that the font you are using doesn't contain the upsilon character. I used the following code:
var myXML:XML=new XML("<test q='0'> <question><![CDATA[<b>Mark makes <I>k/t</I> and <I>g/d</I> substitutions, saying things like koʊ / toʊ</b>]]></question></test>")
and I'm able to display the character just fine. I'm wondering why you are using the html codes for the character, so I tried one with that and one with just the regular character.
I embedded the font (only basic latin) and the character disappeared. But then I added the character to the "include these characters" box and it came back.
So you might want to use just this test to see if it works. If it works then perhaps there is a problem with your xml file.
I've been around these forums along time and there are many times when folks have sworn up and down that their file is saved as UTF-8, but after many go-arounds we finally figure out that it isn't for one reason or another. So just be absolutely certain that it is. Although since you are using the html encoding which only requires regular ascii characters it shouldn't be a problem.
Thanks a million.
You were absolutely right...the font I was using didn't contain the upsilon charater.
I'm using Verdana and now I changed to MS Mincho only for those characters. It displays perfectly.