[man]strip_tags[/man] strips HTML tags - it has nothing to do with dollar signs.
[man]ereg_replace[/man] uses $ in its regular expressions to represent the end of a string. But you're not using regular expressions here so there's no point using ereg_replace (or preg_replace).
Either way, the problem has nothing to do with the fact that $ is used to decorate variables (even if it did, it wouldn't matter, because you were using single quotes, and PHP doesn't look inside single-quoted strings for variables).
Go with drew010's suggestion and use [man]str_replace[/man], which is used to replace one specified string with another.