Neilo, I did not receive your test messages, only lordmatrix's messages came through. In these messages I can see the extra slashes.
It sounds like using the strip slashes should work, for you this would need to be implemented around the $pval like this:
<strong><?php echo(str_replace("_"," ",$pkey)); ?>: </strong>
<?php echo(str_replace("\n","<BR />",stripslashes($pval))); ?>
Please give this a try and let us know if it works. Thanks to both of you for working on this so diligently. If both of you are able to confirm that added the strip slashes makes it work then I will look into getting a bug of some type logged for this so it can be updated.