The mangled quotes sounds like a UTF-8 issue. MobiPocket is supposed to support UTF-8 but Windows 1252 encoding is much more common for native MOBI ebooks.
An alternative that might be worth trying is eReader. Software for BlackBerry is available from FictionWise and B&N. I don't know if Calibre's ePub -> eReader would help with quotes, but eReader does well on a small screen.
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