I host a lot of joomla web sites which don't support PHP_SafeMode. The difficulty for a joomla web site is to find an hosting server with the SafeMode turned off.
I know this problem, its common with joomla. I had a joomla site on one of the servers that I maintained, the owner of the site did not install all joomla patches immediately when they get released. The website got hacked serveral times and only a strict php setup with safemode on prevented that the hackers were able to break out of the website directory. The last time it was a r57shell too if I remember correctly.