Your host needs to disable magic_quotes_gpc to run this version of Joomla!
Either open up your php.ini file (which is located in the root directory and also may be found in your administrator folder) and if that is the case, edit both or create a php.ini file in both locations and add this line to that file.
For those that are not familiar with an php.ini file, here is what the contents of the file looks like.
disable_functions=show_source, system, shell_exec, passthru, exec, phpinfo, popen, proc_open
The items in bold should reflect your server path.
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