Quotations within quotations

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'."

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 .' "