I found the issue ...
it seem on SOME machines and only on the xsl files .. i.e. works fine on the proxy while on local or server no......... it is really weird... i do not think it is the an encoding issue.
below is the code of the page.
it is the special character for the space:
the current one is:  
I used:  
With this it is working on ALL machines!
I tried other special characters for the space but it seem this one works
I use the text pad and replaced
===================================
<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"><html xml:lang="en-US" lang="en-US" xmlns="http://www.w3.org/1999/xhtml"><head id="Head">
<!--**********************************************************************************--><!-- DotNetNuke� - http://www.dotnetnuke.com --><!-- Copyright (c) 2002-2010 --><!-- by DotNetNuke Corporation -->
<!--**********************************************************************************--><meta content="text/html; charset=UTF-8
</span>�<a href="?udt_784_param_page=2&udt_784_param_search=&udt_784_param_orderby=Occurrence_x0020_Date&udt_784_param_orderDirection=descending"
class="CommandButton">2</a>�<a href="?udt_784_param_page=3&udt_784_param_search=&udt_784_param_orderby=Occurrence_x0020_Date&udt_784_param_orderDirection=descending"
class="CommandButton">3</a>�<a href="?udt_784_param_page=4&udt_784_param_search=&udt_784_param_orderby=Occurrence_x0020_Date&udt_784_param_orderDirection=descending"
class="CommandButton">4</a>�<a href="?udt_784_param_page=5&udt_784_param_search=&udt_784_param_orderby=Occurrence_x0020_Date&udt_784_param_orderDirection=descending"
class="CommandButton">5</a>�<a href="?udt_784_param_page=6&udt_784_param_search=&udt_784_param_orderby=Occurrence_x0020_Date&udt_784_param_orderDirection=descending"
class="CommandButton">6</a>�<a href="?udt_784_param_page=7&udt_784_param_search=&udt_784_param_orderby=Occurrence_x0020_Date&udt_784_param_orderDirection=descending"