Quotations within quotations

[Thekherham]

I am in a quandary (is there such a word?) about quotations within quotations, such as a character quoting some litarary passage or something. I am confused as to the punctuation I should use, at the beginning and the end.

So which one of these is correct?

"'To be or not to be, that is the question,'" Billy said, quoting Hamlet.
" 'To be or not to be, that is the quetion,' " Billy said, quoting Hamlet.
"'To be or not to be, that is the question'," Billy said, quoting Hamlet.
" 'To be or not to be, that is the quetion'," Billy said, quoting Hamlet.

Also, at the end end of a sentence, is it: .'" or .' " or'."

[DeleyanLee]

That is not the complete sentence of the quote, so it would be '."

If it was the complete sentence of the quote, then it would be .'"

That make sense?

[Thekherham]

I think so. My main concern is the punctuation. At the beginning, when I put it like "' it doesn't look right, but when I put it like " ' it looks rather unusual.
At the end, both .'" and '." don't look right, although I suspect in both cases, the beginning and the end, the former ("' and '") may be right.
I went to the library today and found in style books that when a quote within a quote ends a sentence, the consensus seems to be .' "

[maestrowork]

First, if you say "Billy said, quoting Hamlet" then you really don't need the quotes inside the quotes.

As for the punctuation, #1 is correct, but typesetters might add an extra space between the closing single quote and double quote:

"'To be or not to be, that is the question,' " Billy said.