i had the same problems and this is what i did to fix it... let me know if this works for you...
in index.php... find...
<?php
ADD after
if (get_magic_quotes_gpc() ) {
$stripquotes = create_function('&$data, $self',
'if (is_array($data)) foreach ($data as $k=>$v) $self($data[$k], $self); '.
'else $data = stripslashes($data);');
$stripquotes($_POST,$stripquotes);
$stripquotes($_GET,$stripquotes);
$stripquotes($_COOKIE,$stripquotes);
}
in installer/check.php... find
$ini_checks = array('file_uploads' => 1, 'session.auto_start' => 0,
'magic_quotes_gpc' => 0, 'magic_quotes_sybase' => 0);
REPLACE with
$ini_checks = array('file_uploads' => 1, 'session.auto_start' => 0,
'magic_quotes_gpc' => 1, 'magic_quotes_sybase' => 0);
in installer/check.php... find
// strip slashes if magic_quotes enabled
// if ((bool)get_magic_quotes_gpc())
// $value = stripslashes($value);
REPLACE with
// strip slashes if magic_quotes enabled
if ((bool)get_magic_quotes_gpc())
$value = stripslashes($value);