I'm using 3.3 and the instruction is to use the b-quote button in visual mode in the WP editor. I'm on 2.8 WP and there is only a b-quote button in the html mode. And the quote always comes out black text with a white background. (my blog has a black background).

Any idea of how I can simply set the blockquote style under the blockquote tab and then be able to apply it in the WP editor???

in the visual editor in WP 28 the block quote is a graphic of a double quote. It's between the numbered list and keft justify icons

If it is coming out black, you must have the color set to black in ATO->blockquotes-> Blockquotes: Style

black = 'background: #ffffff:'
light grey = 'background: #f4f4f4:'

Thanks....why didn't I think of that!!!