Not sure if you wanted a test on 1.5 for our setup or for the other post but I thought I would give it a go anyway!
Just installed 1.5.4 Stable and hooked up to AD. My user account (nice normal characters work with no problem) but with a test user account "arthur o'pint" with a normal lower case password did not work.
The Windows Application Log (IP address altered), registered the following:
php[4076], [client 10.0.0.1] http://intranet/moodledev3 Failed Login: arthur o\'pint Mozilla/4.0 (compatible; MSIE 6.0; Windows NT 5.1; SV1; .NET CLR 2.0.50727).
The one difference I could see is that when I use the apostrophe on 1.6, when the login page is returned (after trying once), the username is escaped with a \ before the apostrophe i.e. Try to login initially with "arthur o'pint" and the correct password, the login page is returned stating Invalid Login but now displays "arthur o\'pint"
On 1.5.4, this does not happen, it returns the typed username but still displays Invalid Login.
Just looking at the other enteries in the event log, the following is also logged in the order of earliest to latest...
PHP Warning: ldap_search() [<a href='function.ldap-search'>function.ldap-search</a>]: Search: Bad search filter in D:\moodleDev3\moodle\auth\ldap\lib.php on line 1364.
PHP Warning: ldap_first_entry(): supplied argument is not a valid ldap result resource in D:\moodleDev3\moodle\auth\ldap\lib.php on line 1371.
PHP Warning: ldap_search() [<a href='function.ldap-search'>function.ldap-search</a>]: Search: Bad search filter in D:\moodleDev3\moodle\auth\ldap\lib.php on line 1364.
PHP Warning: ldap_first_entry(): supplied argument is not a valid ldap result resource in D:\moodleDev3\moodle\auth\ldap\lib.php on line 1371.
PHP Warning: ldap_search() [<a href='function.ldap-search'>function.ldap-search</a>]: Search: Bad search filter in D:\moodleDev3\moodle\auth\ldap\lib.php on line 1364.
PHP Warning: ldap_first_entry(): supplied argument is not a valid ldap result resource in D:\moodleDev3\moodle\auth\ldap\lib.php on line 1371.
and then finishes with the error posted above (PHP is configured to log errors to the Windows Event Log).