Working from the bottom up, the problem first occurs with [link|http://z.iwethey.org/forums/render/content/show?contentid=3453|this post].

If I Use the Source, I can see that he's got the quote inside of <PRE> tags, which means it's preformatted - the line breaks, spacing, etc. are all rendered as-is in a fixed width font. While <PRE> is good for showing program code, it's not necessarily good for quoting things.