All ISP have this same problem. Admin panels are not ready. It will by a few months indeed to have mass update to 5.3.

Here is a message from admin of bplaced.net to solve the magic_quotes-problem :
-----------------------------------------------------------------------------------------
true, magic_quotes is still enabled and will not be turned off unless PHP 6.0 at bplaced, this is
due to the massive amount of software which still requires that feature.
You may of course disable it, by creating a file named .php.ini - put it in your root-directory or
the directory you wish the effect for and insert the following text:

magic_quotes_gpc = off
-----------------------------------------------------------------------------------------