I may be missing something, but it looks like you're printing and then discarding the utf8-encoded text, then continuing on with the non-utf8 text. Shouldn't it be something like this? 
    my $utf8 = HTML::Entities::decode($line);
    $utf8 = Encode::encode_utf8($utf8);
    my $proper = HTML::Entities::encode($utf8);
    print $proper;

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Update: Ah, nevermind, I misunderstood what you were saying initially.

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In reply to Re^2: Matching ampersands that are NOT part of an HTML entity? by EvanK
in thread Matching ampersands that are NOT part of an HTML entity? by Anonymous Monk

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