67 Super Sport,
Are you submitting this form via GET or POST?
It *shouldn't* matter at all to be blunt with you, but what it sounds like is that you have magic quotes turned on, on the server.
I recommend turning that off.. as it is nothing but a problem.
To have quotes in a string, you simply need to wrap them in single ticks..
$myTextString = 'This is my "Happy" Place!';