My original code and post has single quotes in the string assignment (re-pasted code snippet below). What I was trying to explain in my 2nd post is running the debugger and looking at the generated script the single quotes are converted to double quotes. Also, that having single quotes in string is fine until I introduce the <> in the FieldRef tag. So either my browser is converting single to double quotes (this happens in both IE and FireFox) or The SharePoint Designer is doing something to it.
var test = "<Query>" +
"<Where>" +
"<Eq>" +
"<FieldRef Name='Title' /><Value Type='Text'>Bob Tester</Value>" +
"</Eq>" +
"</Where>" +
"</Query>";