Same problem still exists in ZS R2.0 RC2.
It is not possible to add a user or a host if the admin password contains space, &, ! or any other character that the shell will interpret as special.
As you can see below in chrisfu’s posting, the -w argument of ldapadd is invoked without quotes. Consequently, any password which contains shell special characters or spaces will generate an error.
The post is 3 years old, however the problem still exist. This should be a trivial fix.