Pound sign creating error

I have some pound signs in one of my output fields that are causing an error in the Report Builder. I've tried doing a Replace, but just can't seem to get the syntax correct.

Original code:
query.Action & Chr(13) & Chr(10) & IIf(query.Material NEQ '', DE(query.Material), DE(query.ContainerSize))

Tried doing a Replace like this:
query.Action & Chr(13) & Chr(10) & IIf(query.Material NEQ '', DE(Replace(query.Material, '#', 'No.')), DE(query.ContainerSize))