From what I can understand from the code, in
.include/fun_edit.php there is a line of code that
assumes that PHP has magic_quotes_gpc turned on. This
means that if it is not turned on, backslashes (\) go
missing when you save files. The stripslashes should
only be done if magic_quotes_gpc is on. The line is...
$code = stripslashes($GLOBALS['__POST']["code"]);
Well that is my guess anyway. I am running PHP Version
5.0.4 and it runs very well other wise.
A work around if you are running apache is to place the
line "php_flag magic_quotes_gpc On" into an .htaccess file.