problem with windows mobile 6.1 pocket ie and encoding of external style sheet

I have noticed a weird behavior.

My browser is pocket IE on windows mobile 6.1 (htc touch pro)

If I save css at the bottom of this post in an external .css file ANSI encoded it get processed as expected but if I save it as UTF-8 encoded pocket ie doesn't process it as expected.

For example I have noticed in utf-8 version it doesn't process padding and margin settings in below css

body {
background-color:#414141;
color:#636563;
font-size:small;
font-family:verdana, sans-serif;
margin:0;
padding:0;
}