That is happening because magic_guotes_gpc is enabled on the server. You can get around this by using stripslashes(), either when you read the data, or print it out. Depending on how you are reading the data file.
echo stripslashes($my_String);
In php4.+, when I write to the file, I run it through addcslashes(), when I read it, I run it through stripcslashes().
addcslashes will delimit new lines, hardbreaks, ect. stripcslashes() will strip all the delimiters from the string. It seems to strip all delimiters, with or without
magic_quotes_gpc() being enabled on the server.
Or, you could simply test for magic_quotes_gpc and run it through stripslashes() if magic_quotes_gpc is enabled.
if (get_magic_quotes_gpc()) {
$my_String = stripslashes($my_String);
}