On the server I am on (16) magic_quotes_gpc is on, you can avoid all the problems by useing a simple function that will check to see if magic quotes is on or not and if not parse the string for you.
CODE
function safeAddSlashes($string) {
if(get_magic_quotes_gpc()) {
return $string;
} else {
return addslashes($string);
}
}
Then all you would have to do is call that before saveing information to the database and yer all set regardless of what the setting is, this avoids a lot of problems down the road if the default settings change or for some reason Hostony decides to change settings.