Maybe this will do the trick:
Code:
// Load document.
XmlDocument pDoc = new XmlDocument();
pDoc.Load("input.xml");

// Get first node (and check if it is a xml declaration).
XmlDeclaration pDecl = pDoc.FirstChild as XmlDeclaration;
if (pDecl == null)
{
    // No xml declaration exists, create one.
    pDecl = pDoc.CreateXmlDeclaration("1.0", null, null);
    pDoc.InsertBefore(pDecl, pDoc.FirstChild);
}
else
{
    // Modify the one we got.
    pDecl.Encoding = null;
}

// Save document.
pDoc.Save("output.xml");
- petter