href in PROPFIND response question

Hey guys,

I have had a user reporting a bug in my WebDAV server library. To keep  
things short, I currently url-encode every segment in the href-element  
within propfind responses.

This has thus far worked for everyone, except this user (who reported  
to use Git as a client). After removing the url-encoding of the  
contents of the href element, things started working fine.

So as for the question: should the href element be url-encoded or not?  
The spec doesn't explicitly seem to mention either way. I'm worried if  
I just plain remove this, clients might pick up '%-sequences' in href- 
elements and wrongfully decode them.

Thanks,
Evert