Using the "sj-testimonial" example from the Smooks project, I configured the EDI reader with the sample input message... it failed to generate the model:

org.dom4j.DocumentException: Error on line 6 of document : Invalid byte 1 of 1-byte UTF-8 sequence. Nested exception: Invalid byte 1 of 1-byte UTF-8 sequence.
at org.dom4j.io.SAXReader.read(SAXReader.java:482)
at org.dom4j.io.SAXReader.read(SAXReader.java:343)
at org.jboss.tools.smooks.configuration.editors.xml.XMLObjectAnalyzer.analyze(XMLObjectAnalyzer.java:38)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:233)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:163)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:153)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:114)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:260)
at org.jboss.tools.smooks.configuration.editors.SelectorCreationDialog.generateInputData(SelectorCreationDialog.java:261)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.generateInputData(SmooksReaderFormPage.java:252)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.refreshInputModelView(SmooksReaderFormPage.java:1077)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.access$0(SmooksReaderFormPage.java:1075)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage$1.linkActivated(SmooksReaderFormPage.java:214)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.handleActivate(AbstractHyperlink.java:233)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.handleMouseUp(AbstractHyperlink.java:327)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.access$2(AbstractHyperlink.java:311)
at org.eclipse.ui.forms.widgets.AbstractHyperlink$4.handleEvent(AbstractHyperlink.java:125)
at org.eclipse.swt.widgets.EventTable.sendEvent(EventTable.java:84)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1598)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1622)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1607)
at org.eclipse.swt.widgets.Widget.notifyListeners(Widget.java:1396)
at org.eclipse.swt.widgets.Display.runDeferredEvents(Display.java:3484)
at org.eclipse.swt.widgets.Display.readAndDispatch(Display.java:3068)
at org.eclipse.ui.internal.Workbench.runEventLoop(Workbench.java:2405)
at org.eclipse.ui.internal.Workbench.runUI(Workbench.java:2369)
at org.eclipse.ui.internal.Workbench.access$4(Workbench.java:2221)
at org.eclipse.ui.internal.Workbench$5.run(Workbench.java:500)
at org.eclipse.core.databinding.observable.Realm.runWithDefault(Realm.java:332)
at org.eclipse.ui.internal.Workbench.createAndRunWorkbench(Workbench.java:493)
at org.eclipse.ui.PlatformUI.createAndRunWorkbench(PlatformUI.java:149)
at org.eclipse.ui.internal.ide.application.IDEApplication.start(IDEApplication.java:113)
at org.eclipse.equinox.internal.app.EclipseAppHandle.run(EclipseAppHandle.java:194)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.runApplication(EclipseAppLauncher.java:110)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.start(EclipseAppLauncher.java:79)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:368)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:179)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:585)
at org.eclipse.equinox.launcher.Main.invokeFramework(Main.java:559)
at org.eclipse.equinox.launcher.Main.basicRun(Main.java:514)
at org.eclipse.equinox.launcher.Main.run(Main.java:1311)
at org.eclipse.equinox.launcher.Main.main(Main.java:1287)
Nested exception:
org.apache.xerces.impl.io.MalformedByteSequenceException: Invalid byte 1 of 1-byte UTF-8 sequence.
at org.apache.xerces.util.ErrorHandlerWrapper.createSAXParseException(Unknown Source)
at org.apache.xerces.util.ErrorHandlerWrapper.fatalError(Unknown Source)
at org.apache.xerces.impl.XMLErrorReporter.reportError(Unknown Source)
at org.apache.xerces.impl.XMLErrorReporter.reportError(Unknown Source)
at org.apache.xerces.impl.XMLDocumentFragmentScannerImpl$FragmentContentDispatcher.dispatch(Unknown Source)
at org.apache.xerces.impl.XMLDocumentFragmentScannerImpl.scanDocument(Unknown Source)
at org.apache.xerces.parsers.XML11Configuration.parse(Unknown Source)
at org.apache.xerces.parsers.XML11Configuration.parse(Unknown Source)
at org.apache.xerces.parsers.XMLParser.parse(Unknown Source)
at org.apache.xerces.parsers.AbstractSAXParser.parse(Unknown Source)
at org.apache.xerces.jaxp.SAXParserImpl$JAXPSAXParser.parse(Unknown Source)
at org.dom4j.io.SAXReader.read(SAXReader.java:465)
at org.dom4j.io.SAXReader.read(SAXReader.java:343)
at org.jboss.tools.smooks.configuration.editors.xml.XMLObjectAnalyzer.analyze(XMLObjectAnalyzer.java:38)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:233)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:163)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:153)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:114)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:260)
at org.jboss.tools.smooks.configuration.editors.SelectorCreationDialog.generateInputData(SelectorCreationDialog.java:261)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.generateInputData(SmooksReaderFormPage.java:252)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.refreshInputModelView(SmooksReaderFormPage.java:1077)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.access$0(SmooksReaderFormPage.java:1075)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage$1.linkActivated(SmooksReaderFormPage.java:214)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.handleActivate(AbstractHyperlink.java:233)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.handleMouseUp(AbstractHyperlink.java:327)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.access$2(AbstractHyperlink.java:311)
at org.eclipse.ui.forms.widgets.AbstractHyperlink$4.handleEvent(AbstractHyperlink.java:125)
at org.eclipse.swt.widgets.EventTable.sendEvent(EventTable.java:84)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1598)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1622)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1607)
at org.eclipse.swt.widgets.Widget.notifyListeners(Widget.java:1396)
at org.eclipse.swt.widgets.Display.runDeferredEvents(Display.java:3484)
at org.eclipse.swt.widgets.Display.readAndDispatch(Display.java:3068)
at org.eclipse.ui.internal.Workbench.runEventLoop(Workbench.java:2405)
at org.eclipse.ui.internal.Workbench.runUI(Workbench.java:2369)
at org.eclipse.ui.internal.Workbench.access$4(Workbench.java:2221)
at org.eclipse.ui.internal.Workbench$5.run(Workbench.java:500)
at org.eclipse.core.databinding.observable.Realm.runWithDefault(Realm.java:332)
at org.eclipse.ui.internal.Workbench.createAndRunWorkbench(Workbench.java:493)
at org.eclipse.ui.PlatformUI.createAndRunWorkbench(PlatformUI.java:149)
at org.eclipse.ui.internal.ide.application.IDEApplication.start(IDEApplication.java:113)
at org.eclipse.equinox.internal.app.EclipseAppHandle.run(EclipseAppHandle.java:194)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.runApplication(EclipseAppLauncher.java:110)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.start(EclipseAppLauncher.java:79)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:368)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:179)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:585)
at org.eclipse.equinox.launcher.Main.invokeFramework(Main.java:559)
at org.eclipse.equinox.launcher.Main.basicRun(Main.java:514)
at org.eclipse.equinox.launcher.Main.run(Main.java:1311)
at org.eclipse.equinox.launcher.Main.main(Main.java:1287)
Caused by: org.apache.xerces.impl.io.MalformedByteSequenceException: Invalid byte 1 of 1-byte UTF-8 sequence.
at org.apache.xerces.impl.io.UTF8Reader.invalidByte(Unknown Source)
at org.apache.xerces.impl.io.UTF8Reader.read(Unknown Source)
at org.apache.xerces.impl.XMLEntityScanner.load(Unknown Source)
at org.apache.xerces.impl.XMLEntityScanner.scanContent(Unknown Source)
at org.apache.xerces.impl.XMLDocumentFragmentScannerImpl.scanContent(Unknown Source)
... 52 more
Nested exception: org.apache.xerces.impl.io.MalformedByteSequenceException: Invalid byte 1 of 1-byte UTF-8 sequence.
at org.apache.xerces.util.ErrorHandlerWrapper.createSAXParseException(Unknown Source)
at org.apache.xerces.util.ErrorHandlerWrapper.fatalError(Unknown Source)
at org.apache.xerces.impl.XMLErrorReporter.reportError(Unknown Source)
at org.apache.xerces.impl.XMLErrorReporter.reportError(Unknown Source)
at org.apache.xerces.impl.XMLDocumentFragmentScannerImpl$FragmentContentDispatcher.dispatch(Unknown Source)
at org.apache.xerces.impl.XMLDocumentFragmentScannerImpl.scanDocument(Unknown Source)
at org.apache.xerces.parsers.XML11Configuration.parse(Unknown Source)
at org.apache.xerces.parsers.XML11Configuration.parse(Unknown Source)
at org.apache.xerces.parsers.XMLParser.parse(Unknown Source)
at org.apache.xerces.parsers.AbstractSAXParser.parse(Unknown Source)
at org.apache.xerces.jaxp.SAXParserImpl$JAXPSAXParser.parse(Unknown Source)
at org.dom4j.io.SAXReader.read(SAXReader.java:465)
at org.dom4j.io.SAXReader.read(SAXReader.java:343)
at org.jboss.tools.smooks.configuration.editors.xml.XMLObjectAnalyzer.analyze(XMLObjectAnalyzer.java:38)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:233)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:163)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:153)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:114)
at org.jboss.tools.smooks.configuration.editors.edi.EDIDataParser.parseEDIFile(EDIDataParser.java:260)
at org.jboss.tools.smooks.configuration.editors.SelectorCreationDialog.generateInputData(SelectorCreationDialog.java:261)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.generateInputData(SmooksReaderFormPage.java:252)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.refreshInputModelView(SmooksReaderFormPage.java:1077)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage.access$0(SmooksReaderFormPage.java:1075)
at org.jboss.tools.smooks.configuration.editors.SmooksReaderFormPage$1.linkActivated(SmooksReaderFormPage.java:214)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.handleActivate(AbstractHyperlink.java:233)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.handleMouseUp(AbstractHyperlink.java:327)
at org.eclipse.ui.forms.widgets.AbstractHyperlink.access$2(AbstractHyperlink.java:311)
at org.eclipse.ui.forms.widgets.AbstractHyperlink$4.handleEvent(AbstractHyperlink.java:125)
at org.eclipse.swt.widgets.EventTable.sendEvent(EventTable.java:84)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1598)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1622)
at org.eclipse.swt.widgets.Widget.sendEvent(Widget.java:1607)
at org.eclipse.swt.widgets.Widget.notifyListeners(Widget.java:1396)
at org.eclipse.swt.widgets.Display.runDeferredEvents(Display.java:3484)
at org.eclipse.swt.widgets.Display.readAndDispatch(Display.java:3068)
at org.eclipse.ui.internal.Workbench.runEventLoop(Workbench.java:2405)
at org.eclipse.ui.internal.Workbench.runUI(Workbench.java:2369)
at org.eclipse.ui.internal.Workbench.access$4(Workbench.java:2221)
at org.eclipse.ui.internal.Workbench$5.run(Workbench.java:500)
at org.eclipse.core.databinding.observable.Realm.runWithDefault(Realm.java:332)
at org.eclipse.ui.internal.Workbench.createAndRunWorkbench(Workbench.java:493)
at org.eclipse.ui.PlatformUI.createAndRunWorkbench(PlatformUI.java:149)
at org.eclipse.ui.internal.ide.application.IDEApplication.start(IDEApplication.java:113)
at org.eclipse.equinox.internal.app.EclipseAppHandle.run(EclipseAppHandle.java:194)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.runApplication(EclipseAppLauncher.java:110)
at org.eclipse.core.runtime.internal.adaptor.EclipseAppLauncher.start(EclipseAppLauncher.java:79)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:368)
at org.eclipse.core.runtime.adaptor.EclipseStarter.run(EclipseStarter.java:179)
at sun.reflect.NativeMethodAccessorImpl.invoke0(Native Method)
at sun.reflect.NativeMethodAccessorImpl.invoke(NativeMethodAccessorImpl.java:39)
at sun.reflect.DelegatingMethodAccessorImpl.invoke(DelegatingMethodAccessorImpl.java:25)
at java.lang.reflect.Method.invoke(Method.java:585)
at org.eclipse.equinox.launcher.Main.invokeFramework(Main.java:559)
at org.eclipse.equinox.launcher.Main.basicRun(Main.java:514)
at org.eclipse.equinox.launcher.Main.run(Main.java:1311)
at org.eclipse.equinox.launcher.Main.main(Main.java:1287)
Caused by: org.apache.xerces.impl.io.MalformedByteSequenceException: Invalid byte 1 of 1-byte UTF-8 sequence.
at org.apache.xerces.impl.io.UTF8Reader.invalidByte(Unknown Source)
at org.apache.xerces.impl.io.UTF8Reader.read(Unknown Source)
at org.apache.xerces.impl.XMLEntityScanner.load(Unknown Source)
at org.apache.xerces.impl.XMLEntityScanner.scanContent(Unknown Source)
at org.apache.xerces.impl.XMLDocumentFragmentScannerImpl.scanContent(Unknown Source)
... 52 more