xml.parsers.expat and utf-8

[dagurp]

I have this code:

import xml.parsers.expat
parser = xml.parsers.expat.ParserCreate(encoding="UTF-8")
text = unicode("<div>þórður</div>",'UTF-8')
print parser.Parse(text,1)

And this is what I get:
UnicodeEncodeError: 'ascii' codec can't encode characters in position
5-6: ordinal not in range(128)
I think I've tried all variations possible but I always get errors.
Anyone know what I'm doing wrong?