Feeling like I am having a monologue. Anyway, after spending three days strugling along, changing installations to Mysql, installing Apache, doing this, doing that and going happily and merrily around in circles without achieving anything I stumbled accross the answer,
The famous PHP.INI
magic_quotes_sybase = on
and remember to restart the IIS server.
Anyway, hope this little bit of trivia will help some other lost soul in this strange, strange galaxy of information technology that we are travelling in.
Obviously there is the likelyhood that I failed to read the user installation manual properly (as usual the case) and will be informed by some wise guy that is printed in BIG BOLD CAPITAL LETTERS on page one of the "You MUST read this section first". What fun is there anyway in a man's life if he read the installation manual first before he try to assemble anything. It's like asking for directions when you are lost and your wife is sitting next to you, a definitedly NO, NO.