this is the code I ran, and it quite happily displays that the file exists
<%
strPath = "c:\temp\"
strFile = "apostroph'e&ersand.txt"
Set objFSO = Server.CreateObject("Scripting.FileSystemObject")
If not objFSO.FileExists(strPath&strFile) Then
strErr=strErr & "<li>"&strFile&" does not exist.</li>"
Else
strErr=strErr & "<li>"&strFile&" exists.</li>"
End If
Set objFSO = Nothing
Response.Write strErr
%>