ok, to maintain the line breaks AND remove any dodgy code that might hack it's way in(one way at least):
$blah = nl2br(htmlspecialchars("$blah"));
then, if you are displaying the info again in a form field, use:
$blah = eregi_replace('<br />',"",'$blah');
$blah = eregi_replace('<BR />',"",'$blah');
Sounds like you've got it sorted anyway, but just thought I'd add an alternative 🙂