Index: taxonomy.php
===================================================================
--- taxonomy.php	(revision 11028)
+++ taxonomy.php	(working copy)
@@ -127,7 +127,7 @@
 	else
 		$update = false;
 
-	$name = $cat_name;
+	$name = $cat_name = wp_specialchars($cat_name);
 	$description = $category_description;
 	$slug = $category_nicename;
 	$parent = $category_parent;