isset() can only test to see if a variable is set or not. You haven't got a variable there, you've got a whole expression ($quote=blahblahblah).
[man]isset[/man]
Warning: isset() only works with variables as passing anything else will result in a parse error.
So PHP gets through reading "$quote" and then chokes on the "=".
But think about it; if you're trying to see if $quote isset() or not, the answer will always be "yes" - it's set to the output of file_diary.
Are you sure isset() is what you want? What are you trying to test for?