The one thing that I did find is that the google gadget api in IE doesn’t like xml documents with encodings other than utf-8. In my api code, I was using an XmlWriter object to write to a StringBuilder. I found out that in this configuration, the xmlwriter will ignore the encoding type, opting always for utf-16. So… I modified my code slightly to use the response stream instead and things are kosher now. I believe that it’s a bug with Google Gadgets (not reading encodings other than utf-8) and a bug with Microsoft (not following the specified encoding with XmlWriter and StringBuilder objects).
You can check out the Property Center gadgets by clicking here.