Trust me, you will avoid LOTS of problems if you move your Moodle to a new hosting having safe mode = off. There are many. I think there is no way have Moodle running properly with safe mode = on.
Some good ones:
http://www.totalchoicehosting.com Just for testing and small sites (5$/month) Warning: if you try to put a big site, they will stop it (because of CPU/database abuse).
http://moodle.com/hosting For any size and guaranteed best performance, including Moodle installation, customization and support (100$/month). This is the one to use if you do not have your own server and you want to make a serious production server fot lots of users and courses.
You can look for many others in the forums. I think there are some discussions about it in the "Servers and Performance" forum.