I have this problem too.
I think the bit at the end of that article is what the problem is. I’d say since my phpMyAdmin is telling me that the MySQL version running is 5.0.15-nt that Brinkster has taken the second option.
Rather than upgrading to 5.0.22, they have taken the
sql-mode=NO_BACKSLASH_ESCAPES approach. *cough* slack *cough*
I’m guessing that the backslash escaping for apostrophes is tightly built in to WordPress?