I'm experiencing a similar problem with apostrophe's and bulk uploads and comments. Currently I solved it by a workaround - edited the code and added "addslashes" before it inserts to DB and "stripslashes" for the comments.
I should also mention that the apostrophe problem with inserts only occurs with bulk uploads (when bypassing) and when reading from db it only appears in comments, but in all the comments - meaning in the recent photos page, comments page and show photo page.
I would be happy for an official bug fix instead of having to use that work around since I know it doesn't actually fix the problem.
I doubt its a php problem as everything else works fine and I also tried recompiling apache and php.