>We are going commence a project in .NET which will allow user submit XML document.
>Which encoding would be better to use if I were to write ASP.NET application to parse the xml through a Typed DataSet? Or does it matter?

Dawa,

You do not have to choose an encoding. When you serialize/deserialize methods, you specify a writer/reader object to handle the I/O. You can set the encoding property of this object independent of the XMLSerializer. If you use the XML reader and writer to perform the I/O, the encoding is completely transparent.

So you can make the encoding an option based on who is sending and receiving the xml documents.