If file name contains character " ' ", GJPP discards it from the name and
attempts to take file with the name created; if there are, it proceeds as
if this name was given.

While it is understandable that not all allowed by DOS for names characters
are acceptable for GCC, the reaction for undesirable character must be
different.

In private email discussion, it turned out that the reported
problem is with filenames passed to gcc, on the command line,
not filenames in general. 

That makes the reported behaviour a documented feature of the
wildcard expansion mechanism: ' is treated specially if it
occurs in the command line of any DJGPP-compiled program.

It's in the FAQ, as well, but for quick reference: to compile
a file called foo'.c  (with a quote in the name), to this:

	gcc -c foo\\'.c

Ooops, make that

	gcc -c tmp\'.c

(Looks like our trusty Bug Tracker does no longer eat \'s or
try to interpret % sequences...)