Windows BindDLZ, ODBC and MSSQL Native Client, Doesnt Like | (Bar)

I am using a version of Bind DLZ compiled for Windows with ODBC and a
SQL Server native client 2005 connection. The ODBC connector tests OK
and BIND works for recursion and gives no errors before queries for
domains in the Bind DLZ table occur. They always fail with an error as
below:

10-Nov-2008 14:54:50.781 Odbc driver unable to return result set for
lookup quer
y
10-Nov-2008 14:54:50.781
Query String: select ttl, type, mx_priority, data, ownerid, serial,
refresh, ret
ry, expire, minimum
        from DNS_DnsRecords where zone = 'grandchild0ren.net' and (type
= 'SOA'
or type='NS')

10-Nov-2008 14:54:50.781 dns_sdlz_putrr returned error. Error code was:
failure

I ran an ODBC log and it seems most of the queries succeed except the
one containing a "bar", here is a sample error from the log:
named -f        d88-d48	ENTER SQLExecDirect 
		HSTMT               00A81FA8
		UCHAR *             0x0053C010 [     219] "select ttl,
type, mx_priority, case when lower(type)='txt' then '"' || data || '"'\
a        else data end from DNS_DnsRecords where zone =
'grandchild0ren.net' and host = ' <at> '\ a        and not (type = 'SOA' or
type = 'NS')"
		SDWORD                   219