i think i've finally got it: for those of you who may be reading this thread in search of some answers...
addslashes info:
if get_magic_quotes_gpc == 1, then no need to do addslashes() for gpc data.
if get_magic_quotes_runtime == 0, then do addslashes() for runtime data if you want to add slashes.
stripslashes info:
if you are pulling data from the db, displaying it on screen, and get_magic_quotes_whatever == 1 or addslashes was used, no need to do stripslashes().
if you are pulling data from a form, get_magic_quotes_gpc == 1, and you want to mirror the data back to the screen, no db involved, then do stripslashes().
other info:
philipolson is right: if get_magic_quotes_whatever == 1 then you will not see \' or \" in your database. you can check that slashes are there by echoing form data directly to the screen.
also, you might not want to trust the output from phpMyAdmin v. 2.2.2 to determine if you have slashed correctly. this is because, even though you can slash correctly, phpMyAdmin 2.2.2 will display " unslashed but \ and ' will be displayed as \ and \' so look at your db through ssh instead.
whew! i hope i got that all right. please correct me if needed.