In the bottom of the reply box are three boxes, click "Switch to Full Reply Screen.

Once in full reply screen there is a row of fun looking boxes. Highlight the text you want to quote and then click the box that looks like a quotation mark.

you should see a parenthesis, the word quote and then the text you chose. If you want to attribute the quote to the author, click in after the word quote and put =author

For example (quote=neato

Also, in this box you'll see the smiley face icon, here you can choose to add all the wonderful emoticons.......
eek tired sleep sick cry wink grin confused smirk shocked laugh crazy blush frown smile cool mad whistle