Ok, the solution to this is the following.. for versions of ColdFusion later than 5, change the line in the file /browser/default/connectors/cfm/connector.cfm
It turns out that the newer version of ColdFusion (at least 7) does not properly escape certain characters and hence any filename with an "&" in it wasn't being read properly.
RE: image names with "&" throwing errors
files = files & '<File name="#qDir.name[i]#" size="#IIf( fileSizeKB GT 0, DE( fileSizeKB ), 1)#" />';
to
files = files & '<File name="#XMLFormat(qDir.name[i])#" size="#IIf( fileSizeKB GT 0, DE( fileSizeKB ), 1)#" />';
It turns out that the newer version of ColdFusion (at least 7) does not properly escape certain characters and hence any filename with an "&" in it wasn't being read properly.