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I think the biggest problem here is the unbalanced quotes - I can't think of any way of automatically balancing them, because this requires natural language skills.
Assuming you have manually balanced the quotes, you could then use the Word auto-correct feature to replace " with the smart quotes throughout the document - this uses a different character for opening and closing quotes. It would then be possible to global search and replace e.g., opening quote followed by space, with just an opening quote.
I have had to go through exactly this process with one of the books I read recently. As I read the book on the reader, I book-marked pages with errors, so that later I could fix these errors in Word (the source document was an RTF). Unbalanced quotes were one of the biggest problems, and I could not think of any way of automatically fixing them (and I am a programmer).
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