Using mysql_real_escape_string updates the entry in the database empty. It erases what was there.
I`m guessing its because you aren`t filtering your content before it hits your database and things like quote marks and/or apostrophes are killing the update.
Using the paragraph of text I posted in my initial message is what fails, there are no apostrophies or quotes.
The only other thing I can think of that could be an issue is magic quotes are turned on, and I don't have access to the php.ini file on the server where this site is hosted. I've also tried turning them off using the .htaccess method, but that does not work either.