Well we need to have more details to help with that. Where exactly does the pound occur wrong? In Internet Explorer? What do you view in Internet Explorer, a plain text document, an XML document, an HTML document? Where do you load from, from the file system, or over HTTP from a web server? If you load a HTML document from the file system then it needs a meta element
Code:
<meta http-equiv="Content-Type" content="text/html; charset=UTF-8">
where of course the "UTF-8" is an example, it needs to be replaced with the encoding used to encode the document.
And as you are asking in an XSLT forum I suspect you create the HTML with XSLT, in that case you don't need to and should not include the meta element by hand, instead you should let the XSLT processor add it automatically by using the proper output method ("html" in XSLT 1.0 or 2.0, or "xhtml" in XSLT 2.0 if XHTML is used).
If you load HTML or XML or plain text over HTTP you can also configure your web server to send a Content-Type header with a charset parameter with the used encoding, that way the browser knows how to decode the document when rendering it.