diff --git a/tests/testsuite.py b/tests/testsuite.py
index b208c30..212a220 100755
--- a/tests/testsuite.py
+++ b/tests/testsuite.py
@@ -185,8 +185,9 @@ def setUp(self):
         self.runner_kwargs = {}
         self.addCleanup(rmtree, self.outdir)
 
-    def _test_xmlrunner(self, suite, runner=None):
-        outdir = self.outdir
+    def _test_xmlrunner(self, suite, runner=None, outdir=None):
+        if outdir is None:
+            outdir = self.outdir
         stream = self.stream
         verbosity = self.verbosity
         runner_kwargs = self.runner_kwargs
@@ -194,9 +195,15 @@ def _test_xmlrunner(self, suite, runner=None):
             runner = xmlrunner.XMLTestRunner(
                 stream=stream, output=outdir, verbosity=verbosity,
                 **runner_kwargs)
-        self.assertEqual(0, len(glob(os.path.join(outdir, '*xml'))))
+        if isinstance(outdir, BytesIO):
+            self.assertFalse(outdir.getvalue())
+        else:
+            self.assertEqual(0, len(glob(os.path.join(outdir, '*xml'))))
         runner.run(suite)
-        self.assertEqual(1, len(glob(os.path.join(outdir, '*xml'))))
+        if isinstance(outdir, BytesIO):
+            self.assertTrue(outdir.getvalue())
+        else:
+            self.assertEqual(1, len(glob(os.path.join(outdir, '*xml'))))
         return runner
 
     def test_basic_unittest_constructs(self):
@@ -230,6 +237,42 @@ def test_classnames(self):
             r'classname="tests\.testsuite\.(XMLTestRunnerTestCase\.)?'
             r'DummySubTest" name="test_subTest_pass"'.encode('utf8'))
 
+    def test_expected_failure(self):
+        suite = unittest.TestSuite()
+        suite.addTest(self.DummyTest('test_expected_failure'))
+        outdir = BytesIO()
+
+        self._test_xmlrunner(suite, outdir=outdir)
+
+        self.assertNotIn(b'<failure', outdir.getvalue())
+        self.assertNotIn(b'<error', outdir.getvalue())
+        self.assertIn(b'<skip', outdir.getvalue())
+
+    def test_unexpected_success(self):
+        suite = unittest.TestSuite()
+        suite.addTest(self.DummyTest('test_unexpected_success'))
+        outdir = BytesIO()
+
+        self._test_xmlrunner(suite, outdir=outdir)
+
+        self.assertNotIn(b'<failure', outdir.getvalue())
+        self.assertIn(b'<error', outdir.getvalue())
+        self.assertNotIn(b'<skip', outdir.getvalue())
+
+    def test_xmlrunner_safe_xml_encoding_name(self):
+        suite = unittest.TestSuite()
+        suite.addTest(self.DummyTest('test_pass'))
+        outdir = BytesIO()
+        runner = xmlrunner.XMLTestRunner(
+            stream=self.stream, output=outdir, verbosity=self.verbosity,
+            **self.runner_kwargs)
+        runner.run(suite)
+        outdir.seek(0)
+        output = outdir.read()
+        firstline = output.splitlines()[0]
+        # test for issue #74
+        self.assertIn('encoding="UTF-8"'.encode('utf8'), firstline)
+
     def test_xmlrunner_non_ascii(self):
         suite = unittest.TestSuite()
         suite.addTest(self.DummyTest('test_non_ascii_skip'))
diff --git a/xmlrunner/result.py b/xmlrunner/result.py
index e931337..8541637 100644
--- a/xmlrunner/result.py
+++ b/xmlrunner/result.py
@@ -130,6 +130,13 @@ class _TestInfo(object):
     # Possible test outcomes
     (SUCCESS, FAILURE, ERROR, SKIP) = range(4)
 
+    OUTCOME_ELEMENTS = {
+        SUCCESS: None,
+        FAILURE: 'failure',
+        ERROR: 'error',
+        SKIP: 'skipped',
+    }
+
     def __init__(self, test_result, test_method, outcome=SUCCESS, err=None, subTest=None):
         self.test_result = test_result
         self.outcome = outcome
@@ -306,7 +313,7 @@ def addSuccess(self, test):
         """
         self._save_output_data()
         self._prepare_callback(
-            self.infoclass(self, test), self.successes, 'OK', '.'
+            self.infoclass(self, test), self.successes, 'ok', '.'
         )
 
     @failfast
@@ -373,8 +380,10 @@ def addSkip(self, test, reason):
         self._save_output_data()
         testinfo = self.infoclass(
             self, test, self.infoclass.SKIP, reason)
+        testinfo.test_exception_name = 'skip'
+        testinfo.test_exception_message = reason
         self.skipped.append((testinfo, reason))
-        self._prepare_callback(testinfo, [], 'SKIP', 'S')
+        self._prepare_callback(testinfo, [], 'skip', 's')
 
     def addExpectedFailure(self, test, err):
         """
@@ -382,12 +391,12 @@ def addExpectedFailure(self, test, err):
         """
         self._save_output_data()
 
-        testinfo = self.infoclass(self, test, self.infoclass.ERROR, err)
-        testinfo.test_exception_name = 'ExpectedFailure'
-        testinfo.test_exception_message = 'EXPECTED FAILURE: {}'.format(testinfo.test_exception_message)
+        testinfo = self.infoclass(self, test, self.infoclass.SKIP, err)
+        testinfo.test_exception_name = 'XFAIL'
+        testinfo.test_exception_message = 'expected failure: {}'.format(testinfo.test_exception_message)
 
         self.expectedFailures.append((testinfo, self._exc_info_to_string(err, test)))
-        self._prepare_callback(testinfo, [], 'EXPECTED FAILURE', 'X')
+        self._prepare_callback(testinfo, [], 'expected failure', 'x')
 
     @failfast
     def addUnexpectedSuccess(self, test):
@@ -400,11 +409,11 @@ def addUnexpectedSuccess(self, test):
         testinfo.outcome = self.infoclass.ERROR
         # But since we want to have error outcome, we need to provide additional fields:
         testinfo.test_exception_name = 'UnexpectedSuccess'
-        testinfo.test_exception_message = ('UNEXPECTED SUCCESS: This test was marked as expected failure but passed, '
+        testinfo.test_exception_message = ('Unexpected success: This test was marked as expected failure but passed, '
                                            'please review it')
 
-        self.unexpectedSuccesses.append(testinfo)
-        self._prepare_callback(testinfo, [], 'UNEXPECTED SUCCESS', 'U')
+        self.unexpectedSuccesses.append((testinfo, 'unexpected success'))
+        self._prepare_callback(testinfo, [], 'unexpected success', 'u')
 
     def printErrorList(self, flavour, errors):
         """
@@ -531,25 +540,39 @@ def _report_testcase(test_result, xml_testsuite, xml_document):
         testcase.setAttribute('time', '%.3f' % test_result.elapsed_time)
         testcase.setAttribute('timestamp', test_result.timestamp)
 
-        if (test_result.outcome != test_result.SUCCESS):
-            elem_name = ('failure', 'error', 'skipped')[test_result.outcome-1]
-            failure = xml_document.createElement(elem_name)
-            testcase.appendChild(failure)
-            if test_result.outcome != test_result.SKIP:
-                failure.setAttribute(
-                    'type',
-                    test_result.test_exception_name
-                )
-                failure.setAttribute(
-                    'message',
-                    test_result.test_exception_message
-                )
+        if test_result.stdout:
+            systemout = xml_document.createElement('system-out')
+            testcase.appendChild(systemout)
+
+            _XMLTestResult._createCDATAsections(xml_document, systemout,
+                                                test_result.stdout)
+
+        if test_result.stderr:
+            systemerr = xml_document.createElement('system-err')
+            testcase.appendChild(systemerr)
+
+            _XMLTestResult._createCDATAsections(xml_document, systemerr,
+                                                test_result.stderr)
+
+
+        result_elem_name = test_result.OUTCOME_ELEMENTS[test_result.outcome]
+
+        if result_elem_name:
+            result_elem = xml_document.createElement(result_elem_name)
+            testcase.appendChild(result_elem)
+
+            result_elem.setAttribute(
+                'type',
+                test_result.test_exception_name
+            )
+            result_elem.setAttribute(
+                'message',
+                test_result.test_exception_message
+            )
+            if test_result.get_error_info():
                 error_info = safe_unicode(test_result.get_error_info())
                 _XMLTestResult._createCDATAsections(
-                    xml_document, failure, error_info)
-            else:
-                failure.setAttribute('type', 'skip')
-                failure.setAttribute('message', test_result.test_exception_message)
+                    xml_document, result_elem, error_info)
 
         if test_result.stdout:
             systemout = xml_document.createElement('system-out')