It actually looks like this is some sort of encoding issue as it's only happening on certain servers. So far I haven't been able to get access to a server that is having this problem to test. Is it possible for me to get FTP access so I can do some debugging?
Thanks to Charles for giving me FTP access I'm finally able to get this fixed. Need to test a bit more but all of the encoding issues for any of the AJAX stuff should be fixed for 7.0.2.