We looked into this in a connect meeting... It will occur if you have magic_quotes_gpc enabled on the server. The solution is to either turn off that setting, or account for it by an update the file:
webassist/email/waue_spamReports_1.php
update line 40 from:
$MailBody = $MailBody . $_POST['content'];
to:
$MailBody = $MailBody . (get_magic_quotes_gpc()) ? stripslashes($_POST['content']) : ($_POST['content']);