As usual, I went to Google and looked at each significant search results. An hour passed and another hour passed, I can’t make it work using those solutions posted in WordPress forums as well as in other techie blogs.  I almost lost my hope to make it work  until I came across this blog http://zebrahost.net/zblog/?cat=11.  Yes! It did the trick! I first thought it’s in WordPress .htaccess overriding PHPList .htaccess. Wheeew!

The fix requires commenting out line 12 in the htaccess file which is located in the root directory of the PHP List script. All that was needed was to add a # before the line reading php_flag magic_quotes_gpc on

Darn that #! It took me 2 hours to solve it. I hope this post will help others having this problem too.