Encountered a bug trying to click on a recently used directory in the "Add from Local Server". Traced it down to the fact that the path had a single quote in it which was not being properly escaped for the javascript function which copies the path information into the text box. I simply changed the default html escaping into javascript escaping and removed the extraneous replace modifier because it was already handled by the javascript escaping. This is not thoroughly tested and it's possible it's over-zealous in encoding paths; I don't know, but it fixes the problem I had.
Patch for ItemAddFromServer.tpl