Xampp new version 1.6.3 has been released with the support of  PHP 5.3. Magic Quotes feature has been DEPRECATED as of PHP 5.3.0 and REMOVED as of PHP 6.0.0. Relying on this feature is highly discouraged.

Magic Quotes is a process that automagically escapes incoming data to the PHP script. It’s preferred to code with magic quotes off and to instead escape the data at runtime, as needed.

The Earlier versions of Codeigniter has used magic quotes functions of PHP. So, be aware of that. If you haven’t update your CodeIgniter version to 1.7.2 . Your site may crash any time if your server has upgraded to PHP 5.3. You may see the following errors in your site Home Page:

Deprecated: Assigning the return value of new by reference is
deprecated in D:\SERVER\xampp\htdocs\imobiliar\system\codeigniter\Common.php
on line 130

Deprecated: Assigning the return value of new by reference is
deprecated in D:\SERVER\xampp\htdocs\imobiliar\system\codeigniter\Common.php
on line 136

A PHP Error was encountered

Severity: 8192

Message: Function set_magic_quotes_runtime() is deprecated

Filename: codeigniter/CodeIgniter.php

Line Number: 60

A PHP Error was encountered

Severity: 8192

Message: Assigning the return value of new by reference is deprecated

Filename: libraries/Loader.php

Line Number: 255

So, If you upgrade your Xampp and see all your CI projects are crashed then don’t be afraid. Just Upgrade your CI to version 1.7.2 which SVN version has been released and ready to download. I hope your problem will be solved. :)