With arrival of Joomla 3.* the GoDaddy users are facing a new challenge - how to turn off magic_quotes_gpc. this is usually a simple task, there are many ways to do it.
First of all you can usually turn it off from your hosting account - no way to do it on goDaddy...
If that not works, you generally can add a line to your .htaccess file, but you guessed already, that does not working either.
And lastly you can add a php.ini file in your WEBROOT with the corresponding line:
magic_quotes_gpc = Off
Yeah, this not working either, but at least you are close to the solution ;). Here what you should do: First of all, create a file named php5.ini - and not php.ini, as is the standard way to do it. Then be sure, that all lines in that php5.ini are ending with semicolons. Lastly add this line to your php5.ini file:
magic_quotes_gpc = Off;
Save it, and upload it to your WEBROOT directory. And enjoy the benefits ;)