How Can I Preserve HTML Entities With Diazo?

I have the following simple Diazo rules file:

 <xsl:output encoding="US-ASCII"/>

to your document then any non ascii characters will be output using numeric references.

However in your example they are in fact ascii characters that are quoted such as "." as "." There isn't any standard way in xslt 1 to do that (and there should never be any reason to do that if the document is going to be processed by a conforming html or xml system). Any such system will expand those references to their characters before processing starts. (Which is why XSLT can not preserve them: they have been removed by the xml parser before XSLT sees the input data.)