Apostrophes in profiles causing errors during checkout

If you register a user with an apostrophe it is stored in the database correctly. However, during checkout when you log-in the shipping profile includes the old ( \' ) and fails.

I thought the old magic quote stuff was well behind us. At any rate, I cannot get past this even if I edit the user profile to not include the apostrophe and clear the cart and log out. I need to delete the user completely and create a new user without an apostrophe in order to make it work, which of course is no good.

Any thoughts?

(last line from shipping failure)
["eCartCheckoutForm_shipping_lastname"]=> string(8) "O\'Brien" ["eCartCheckoutForm_shipping_firstname"]=> string(3) "Jon" }