I never noticed before since I don't think I've ever used single quotes in category titles before. But a user just reported this to me.
If you add or edit a category that includes a single quote (i.e. That's Life), it returns to a mysql error.
WordPress database error: [You have an error in your SQL syntax; check the manual that corresponds to your MySQL server version for the right syntax to use near 's That'' at line 1]
SELECT * FROM wp_sitecategories WHERE cat_name = 'That's That'
Warning: Cannot modify header information - headers already sent by (output started at /home/wplite/public_html/wp-inst/wp-includes/wp-db.php:108) in /home/wplite/public_html/wp-inst/wp-admin/categories.php on line 32
The categories are created, and everything else seems to work fine, though.