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I'm having the same problem. Also confirmed that this is happening on this site, so others are bound to notice and get a little pissed. Other problems I've had seem to be caused by my particular host/server setup; xoops.org was always a pretty good example of a properly-functioning setup. The good news seems to be that editing other text fields doesn't seem to cause the same problem, so it's probably in or referred to by something in edituser.php. I'll do some digging and post again if I find anything...
/probably not 1337 enough to actually fix this...