Ajax toolkit Autocomplete seems to be crashing on single quotes

Hello,

I am trying to use Ajax toolkit autocomplete on an aspx page. When I try to perform a search including a single Quote in the search string(Like for instance L'Oréal) nothing happens. A glimpse at the script debugger in IE shows the error code "SCRIPT1004: ';' expected" and the offenting lines of code seems to be this one generated from the toolkit:

<script type="text/javascript">
//<![CDATA[
(function() {var fn = function() {$get("ucSearch_ScriptManager1_HiddenField").value = '';Sys.Application.remove_init(fn);};Sys.Application.add_init(fn);})();Sys.Application.add_init(function() {
    $create(Sys.Extended.UI.AutoCompleteBehavior, {"completionInterval":2,"completionSetCount":20,"contextKey":"False@True@False@False@False","delimiterCharacters":"","enableCaching":false,"id":"Search_AutoComplete","minimumPrefixLength":2,"serviceMethod":"GetSimpleSearchAutoCompletion","servicePath":"SearchWS.asmx","useContextKey":true}, {"itemSelected":TextSelected}, null, $get("ucSearch_txtSearch"));
});
//]]></script>

This leads me to believe that single quotes are not handled correctly by the toolkit code. Has anyone else has this kind of problem and have you found a solution to the problem?