This is interesting...

I've done numerous bat files that contained two sets of quotes, and not once did I ever have any problems. However, I cannot say I ever used two sets of quotes AND two sets of parameters in the same command...

I can't think of a single test that I can use to duplicate what you are trying. I did try the following but it only contains one parameter, so while this does work, its not the same thing...

code:
break on
shell '%comspec% /c xcopy "c:\test 1\table.htm" "c:\test 2\" /a' 
? @serror
? @error
Just out of curiousity, have you tried the command in the dos shell to see what kind of error it gives you.