Xml parsing (decimal entities)

I'm having some headaches with parsing xml file, the problem regards xml with hex entities inside of the xml file (i.e: à and so on), I cannot believe why but the result of parsing outputs strange chars and not preserve these entities.

xml text example:
<?xml version="1.0" encoding="iso-8859-1"?>
<root version="0.9.0">
<xmlnode TEXT="test one">
<xmlnode TEXT="this works good"/>
</xmlnode>
<xmlnode TEXT="I put some decimal entities inside a subnode">
<xmlnode TEXT="E&apos; una prova &quot;RIDUZIONE&quot;. Se &#xe8; inserita una riduzione questa deve essere applicata al calcolo."/>
<xmlnode TEXT="&#xe8; gi&#xe0; tutto implementato"/>
<xmlnode TEXT="Controllare perch&#xe8; non funziona pi&#xf9;"/>
</xmlnode>

The (pseudo)code is simple:
- xmlobj = new DOMDocument('1.0', 'UTF-8'); (I tried to put different options to the DOMDocument Object)
- $xmlobj->load($source); (where source has the path of the xml file)
- $XPathobj = new DOMXPath($xmlobj);
- $XPathobj->query($query); (where query is a normal xpath query string)
- ciclying to the DOMNodeList for DOMElement e outputs something

I tried also with the class here (you can use this source file to test):
phpclasses.org/package/5667-PHP-Par ...

I have the same output -> Parsing doesn't preserve the entities and when output data I have strange chars and not entities anymore.

I tried a lot but I cannot find a solution, please help me.
Thanks