Try this (using plotmath expression interpretation):
png(file="AIDS.png", width=5, height=5, units="in", type="cairo", res=800)
xyplot(1 ~ 1, type="b", ylab=expression(sqrt(CD4/µ*l)))
dev.off()
Or:
png(file="AIDS.png", width=5, height=5, units="in", type="cairo", res=800)
xyplot(1 ~ 1, type="b", ylab=expression(sqrt(CD4/mu*l)))
dev.off()
(Either of these was much faster on my device than getting png() to do whatever it did with the character version.)