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Did you ever find a solution?
I have been having the same problem with XoopsGallery. The only version that I can use without getting the backslashes preceeding every quote and apostrophe character is 1.3.3.3.
I submitted a request in the support forums on the xoopsgallery.org web site but was never able to get this resolved.
I made sure all Magic_Quotes directives were turned off in php.ini, and I even created a .htaccess file that contained the commands to turn off magic_quotes, but that hasn't helped either.
Up until recently, it was only the XoopsGallery giving me this problem, but then I went and installed the PM hack v4.7 on my system and now all the Private Messages are having the same problem with backslashes.