Hi all, I'm having the same problems, which just showed up on Friday the 27th: backslashes in front of apostrophes, no pictures embedded in posts, and now no ability to save changes for web pages. I'm using 2.0.2 on a Bluehost server.
Update: Bluehost, it turns out, is affiliated with Hostmonster. When I called tech support, all they needed to do was upgrade my PHP.