Quotated

This is just a little experiment to see how to punctuate a quote within a quote within a quote within a quote and still have it be readable.  If anyone reads it, let me know what you think (about the punctuation):
 
Gene sidled into the writing center and saw Kerri. He approached her and said, “What’s the skinny? It seems you’ve started a game of telephone – purple monkey dishwasher.”
Kerri responded, “Shut up! You’re full of it! I di’int start nothin’!”
“Well, then explain this,” Gene said. “Last Monday, I sees Erik in the writing center, and I says to him, I says, ‘What’s up Daddy-O?’ and he says, ‘Prithee sit. I have a tale that will peak your curiosity, methinks.’ So I sit and he says, ‘On the eve of the new moon, Lady Jen approached me in a state of excitement. |What, praytell, has you so agitated?| I inquired. |I have strange and wonderful news about Sydney.| |Well, then, tell me your tale.| She began, |Last Thursday morn, my bosom friend, Kerri, and I were strolling among the good people of Hartford. It was a lovely morning, full of sunshine and promise. As we approached the gleaming exterior of Capital Community College, Kerri announced, _Ya know what I heard about Syd? She’s, like, all famous and junk._ _Indeed?_ I inquired. _Fo’ sho’,_ Kerri answered. _Ya know that song Sid’s Ahead? That’s about Sydney._Well, you can imagine I was surprised for I neither knew the song in question, nor did I know that Sydney was the subject of a song!|  ‘Zounds!’ I exclaimed, ‘That is strange and wonderful.’  ‘You’re pullin’ my leg’ I says to Erik.  ‘Unless you mean that it’s |strange and wonderful| that Jenny K. believed such a baldfaced lie.’  ‘That peculiarity is indeed the reason for my wonder.'”