Oh, I just remembered, jqGrid (maybe jquery) also has issues with embedded nulls within string data. Here is the actual code my jsStringFormat wrapper uses:
<cfreturn reReplace(replace(jsStringFormat(arguments.str),"\'","'","ALL"),"[^\x 01-\x7F]","?","ALL") />
(Note: there is no space between the \x and the 01 in the above code -- the forum editor is putting it there???)