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The problem lies with the plugin you're using to create the epubs.
Firstly, it's not creating a valid structure with all the necessary components.
Secondly, it's doing something screwy with the encoding that is stopping ADE from recognising it (I noticed the xhtml was endoded without its BOM, which may be part of the issue).
I recreated the epub in Sigil and the characters show fine in ADE. My advice is to ditch this plugin and use something else, Sigil or Atlantis.
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