Sweave files generating miktex errors

Dear useRs--

I have been using Sweave with miktex for years, but on a new install on
Windows XP, miktex seems to be hung up on single quotes.  See example below.

Digging through stackexchange, I found using \usepackage[noae]{Sweave} in
the tex file solved the problem.  My questions are:

--Why would this happen?  I have the ae package installed.

--If inserting [noae] is the solution, how do I have this done by Sweave?

I'll start with the error messages followed by the tex file outputted by
Sweave.

Any help, please?\

Troy

This is pdfTeX, Version 3.1415926-2.4-1.40.13 (MiKTeX 2.9)
entering extended mode
("C:\Documents and Settings\v\My Documents\testsweave.tex"
LaTeX2e <2011/06/27>
Babel <v3.8m> and hyphenation patterns for english, afrikaans,
ancientgreek, ar
abic, armenian, assamese, basque, bengali, bokmal, bulgarian, catalan,
coptic,
croatian, czech, danish, dutch, esperanto, estonian, farsi, finnish,
french, ga
lician, german, german-x-2012-05-30, greek, gujarati, hindi, hungarian,
iceland
ic, indonesian, interlingua, irish, italian, kannada, kurmanji, latin,
latvian,
  lithuanian, malayalam, marathi, mongolian, mongolianlmc, monogreek,
ngerman, n
german-x-2012-05-30, nynorsk, oriya, panjabi, pinyin, polish, portuguese,
roman
ian, russian, sanskrit, serbian, slovak, slovenian, spanish, swedish,
swissgerm
an, tamil, telugu, turkish, turkmen, ukenglish, ukrainian, uppersorbian,
usengl
ishmax, welsh, loaded.
(c:\miktex2.9.4757\tex\latex\
base\article.cls
Document Class: article 2007/10/19 v1.4h Standard LaTeX document class
(c:\miktex2.9.4757\tex\latex\base\size10.clo))
("C:\Documents and Settings\v\My Documents\Sweave.sty"
(c:\miktex2.9.4757\tex\latex\base\ifthen.sty)
(c:\miktex2.9.4757\tex\latex\graphics\graphicx.sty
(c:\miktex2.9.4757\tex\latex\graphics\keyval.sty)
(c:\miktex2.9.4757\tex\latex\graphics\graphics.sty
(c:\miktex2.9.4757\tex\latex\graphics\trig.sty)
(c:\miktex2.9.4757\tex\latex\00miktex\graphics.cfg)
(c:\miktex2.9.4757\tex\latex\pdftex-def\pdftex.def
(c:\miktex2.9.4757\tex\generic\oberdiek\infwarerr.sty)
(c:\miktex2.9.4757\tex\generic\oberdiek\ltxcmds.sty))))
(c:\miktex2.9.4757\tex\latex\fancyvrb\fancyvrb.sty
Style option: `fancyvrb' v2.7a, with DG/SPQR fixes, and firstline=lastline
fix
<2008/02/07> (tvz)) (c:\miktex2.9.4757\tex\latex\upquote\upquote.sty)
(c:\miktex2.9.4757\tex\latex\base\fontenc.sty
(c:\miktex2.9.4757\tex\latex\base\t1enc.def))
(c:\miktex2.9.4757\tex\latex\ae\ae.sty
(c:\miktex2.9.4757\tex\latex\base\fontenc.sty
(c:\miktex2.9.4757\tex\latex\base\t1enc.def)
(c:\miktex2.9.4757\tex\latex\ae\t1aer.fd))))
("C:\Documents and Settings\v\My Documents\testsweave.aux")
(c:\miktex2.9.4757\tex\context\base\supp-pdf.mkii
[Loading MPS to PDF converter (version 2006.09.02).]
) (c:\miktex2.9.4757\tex\latex\ae\t1aett.fd)
! Undefined control sequence.
<argument> +    V1=c('
                     a','b','b','a','c','c','d','a'),
l.14 +  V1=c('a','b','b','a','c','c','d','a'),

\documentclass{article}
\usepackage{Sweave}
\begin{document}
This is a test.
\begin{Schunk}
\begin{Sinput}

(x <- 1+2)

\end{Sinput}
\begin{Soutput}
[1] 3
\end{Soutput}
\begin{Sinput}

test <- data.frame(

+     V1=c('a','b','b','a','c','c','d','a'),
+     V27=c('1-oct-2004', '3-jan-2005','4-jan-2005','30-jan-2004',
+     '12-oct-2012','13-sep-2012', '1-jan-1999', '31-dec-2004'),
+ V24=letters[1:8])
\end{Sinput}
\end{Schunk}

\end{document}

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