I just tried to edit a comment (Note: I upgraded to WordPress 2.0.3 a little while ago) and after submitting the form it said, “Are you sure?” and when I clicked yes, it saved the comment but all of the apostrophes were escaped with slashes.
Thankfully Mark Jaquith took the time to make a plugin that fixed it right up.
It’s also been fixed in the wordpress repository if you’re running on the bleeding edge.