You are right there a still some problems with "'" in usernames.
You can try following: Get uddeim.php from the trunk on joomlacode (its 1.9 dev/beta) but is should be still compatible with 1.8.
Overwrite the file on your server and try again.
It should fixes your problems if not revert to the old version.
uddeIM & uddePF Development
CB Language Workgroup
CB 3rd Party Developer
