Alright, here's what you need to do. First, based on the comments, from other questions:
ISOLATE
You need to determine what is causing the problem. Is it the server? Is it some hidden code somewhere? What? Some programmers may include code like this on a configuration page:
<?php if (isset($_POST))
foreach ($_POST as $key => $value) $_POST[$key] = addslashes($value);
?>
So here are some checks to see if it is the server. This is about as solid a way of checking as possible. Create a NEW page. Leave it entirely blank and add this code:
<?php print_r($_POST); ?>
<form action="" method="POST">
<input type="text" name="test" value="O'riley" />
<input type="submit" name="submit" value="submit" />
</form>
Save it and load it in the browser. Hit submit. See if the slash is added still.
If it is still adding it, you need to troubleshoot your server / configuration. If it's a server you're paying for, you need to tell them to fix it or shove it. If it's your own server, then you're going to need to do some messing / googling to figure out how to turn off magic quotes.
If there are no quotes showing up, then there is definitely some code adding slashes to your post variables. It might not be as obvious as the code above, however. You need to run a search on your code for "addslashes", "mysql_real_escape_string", and possibly "str_replace". If you find one of these, you need to disable it. But be advised this may break other parts of your site that are assuming this action is taking place. You're other option for storing it in the database is to do a function similar to the code above, but instead, run stripslashes on it. Then you can run mysql_real_escape_string on it later. (A bit more unneeded overhead.)