update!
I found out that it is my htaccess that was causing it, i deleted it and voila! everything is perfect 🙂
im having the same problem. wordpress 2.5 adds a backslash (\) on every single quote (‘).
so when you type something like this
she’s pretty
it will become
she\’s pretty
i tried searching for solutions in this site but it seems that i was fixed in the earlier version.
i also tried using html entities but they are not cross browser compatible.
i hope someone will help us 🙂