Smiley ( image tag gets shown instead of images themselves)

Sorry if this question has been answered before but i tried searching through the forums and couldn't find a solution for this.

Problem :
I put a smiley in FCKeditor..

now the thing is that i get the code as

<p><img src="/mmcad/forums/fckeditor/editor/images/smiley/msn/shades_smile.gif" alt="" /></p>

This code wont display image as the <p> tag is used, so how can i remove these tags or what should i change so that FCKeditor shows these images.

Even after setting
FCKConfig.EnterMode = 'br' ; // p | div | br
FCKConfig.ShiftEnterMode = 'br' ; // p | div | br

i get the same reponse

if ( get_magic_quotes_gpc() )
            $postedValue = htmlspecialchars( stripslashes($_POST[post_content]) ) ;
         else
            $postedValue = htmlspecialchars( $_POST[post_content] ) ;

btw get_magic_quotes_gpc() returns 1
Using :
FCKeditor 2.6
PHP
FCKeditor made in browser though JS
Getting values from FCKeditor by using SUBMIT ( POST method)


I would be really glad if someone can help me out here