The second dialog is the one from the VS2010 productivity power tools pack - I havent used it myself so dont know of any problems with it. Have you recently installed this?
My opinion is that if you use weird characters in paths, you get what you deserve. :)
I know there are bugs about '#' character in paths in the core VS product, in addition to whatever may be in the Pro Power Tools extension. There is a surprising amount of code that goes to/from URIs and filenames, and '#' characters (and everything thereafter) get dropped when roundtripping via a System.Uri
.
In general, I think it's safe to assume that when creating filenames/paths, there will be 10,000 tools of various quality trying to parse the filenames, and a (large) subset of those tools will fail on 'weird' characters. Just avoid weird characters whenever possible. You gotta choose your battles. In an ideal world, tools would be robust to these kinds of issues. In the real world, it's better to name a path "CSharp" rather than "C#" and move on with more important things in life.