Hi Annie,
In add a bit to Wally's reply,
it's possible that while the setting in Tools=>Autocorrect
to switch from plain quotes to smart quotes is
working, the font you're using may not
be able to support that.
Try turning off the 'autoformat as you type' setting for
Smart quotes and see if that works for you.
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Why am I getting little boxes typed into the text whenever I use quotation
marks or apostrophes? >>
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Let us know if this helped you,
Bob Buckland ?

MS Office System Products MVP
*Courtesy is not expensive and can pay big dividends*
Office 2003 Editions explained
http://www.microsoft.com/uk/office/editions.mspx