xml error invalid character inside declaration

I have an xml template that I am using in visual studio 2012. It begins like this

<?xml version="1.0" encoding="utf-8" ?>

However when my code fills out the template, IE is unable to open the xml document.

When I open the xml doc with notepad I see that the declaration has changed from what it was in the template. It now reads:

<?xml version="1.0" encoding="utf-8"?>

The space is now missing between the " and the last '?'. When I make the change in notepad and put the space back it works. What is making this happen?