When I use Quoted Reply it does just that. It puts the message I'm replying to in a grey box. That's great but my reply then also shows up in the same Quoted grey area. It should be separate. Am I doing something wrong?

Does it always do that? Or did you possibly back up (e.g. pressing the left arrow on your keyboard) into the previous reply area? If you don't back up into the previous resposne, it should come out gray, while yours should be on white.

You're right (as usual)! I started typing after the quoted part instead of before it. OK now that I know what I'm doing

Most people type after it. As long as you don't back up into it you'll be fine typing after it. I'm going to see if Dave can put the quoted reply in the gray box inside of your editor window too, so it will be harder to "mess it up."