I'm supposed to disable the magic_quotes

Your host will be able to answer that.

I have access to cpanel. All files are in there. where in there would that file be?

Again, ask your host.

Maybe you can try this, but if it's don't work, do what acrylian said.

Put this line in your .htaccess file :

php_flag magic_quotes_gpc off

Each host is differently. Some let you do this via .htacces, some via a user.ini or indeed a php.ini file in directory. And if you have a full dedicated server you probably can indeed change the real php.ini.

Again, I really think the easiest is to ask the host how to do this if you are allowed at all as not all shared hosts might do that (might depend on the package bought)