I’m curious as to if you have the curly quotes in your code.... that woul dbe enough to do it.
I’ve fixed up all the quotes and reprovided the code again below:
{exp:gallery_extended:entry_form gallery_name="Photos" return="{path=projects/view}" override_resize="no"}
<label class="form_label">File</label>
<input type="file" class="form" name="image1" size="35" />
<label class="form_label">Title</label>
<input type="text" class="form" size="75" maxlength="100" name="title" value="" />
<label class="form_label">Custom Field 1</label>
<input type="text" name="custom_field_one" class="form" size="75" maxlength="100" value="" />
<label class="form_label">Caption</label>
<textarea name="caption" cols="75" rows="5" class="form" id="caption">
<select name="category">
{category_menu}
<option value="{cat_id}">{cat_name}
{/category_menu}
</select>
<input name="submit" type="submit" class="form" value=" Upload Photo " />
<input type="hidden" name="apply_watermark" value="n" />
<input type="hidden" name="allow_comments" value="n" />
<input type="hidden" name="status" value="o" />
<input type="hidden" name="entry_date" id="entry_date" value="{current_time format="%Y-%m-%d %h:%i %A"}" />
{/exp:gallery_extended:entry_form}
Let me know if that does anything for you.
I’ve also updated the Documentation Example to display the proper quotes so this does not happen for others 
