Sonic 8.0.1 Web Service fails with embedded XML

Hi

I have a top-down web service.. One of the elements in the SOAP Body has a string element that can contain XML. The parser that creates the XML substitutes escaped characters (< and >) for the embedded XML. When I try to post such a message from SoapUI to the Web Service it returns he error:

<soap:Envelope xmlns:soap="http://schemas.xmlsoap.org/soap/envelope/">
   <soap:Body>
      <soap:Fault>
         <faultcode xmlns:ns1="http://www.progress.com/sonic/esb">ns1:ApplicationFault</faultcode>
         <faultstring>com.ctc.wstx.exc.WstxIOException: Invalid UTF-8 start byte 0x8b (at char #2, byte #-1)</faultstring>
      </soap:Fault>
   </soap:Body>
</soap:Envelope>

Without ever having entered the Process that implements the Web Service. 

If I post the a message with ordinary string data in that element the web service and Process work fine.

If I post the same messages to a .NET Web Service created from the same WSDL they both work fine.

The WSDL and schema and sample SOAP Envelopes are attached.

Thanks

Steve

TopDownWebService.zip