Using Office 2007 on a Windoze Vista machine, I also see the "smart select" grab the closing single-quote and space thereafter if I double-click the word, but if I click the space between the word and the quote (either right to left or vice versa), it gets the proper letters I have specified.

I don't know if that method is any easier or preferable to the click and shift-arrow the text, but I thought I would throw in my 2 pesos just in case it was useful?