Thanks. It was the language - sort of - which was the problem - US-English gets curly quotes but US-Extended - 'Old Glory' with a small U below it doesn't.
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Is it just me or is the QuickFix setting for smart punctuation not working in 1.0.2. I get straight quotes what ever the setting is - changing font, restarting Nisus, the computer, etc makes no difference. Edit - convert to smart quotes works perfectly.