Hola,
prueba usando el caracter de escape delante de cada comilla que no deba interpretar:
for (ii=0;ii<kk;ii++)
{document.write('<a href = ' + pic[ii].link + '><img space=0 hspace=0 vspace=0 border=0 width=100 height=76 alt=' + pic[ii].alt + ' onmouseout="startScrolling();low(this);MM_showHide Layers(\'ly01\',\'\',\'hide\');" onmouseover="clearInterval(myInterval);high(this); MM_showHideLayers(\'ly01\',\'\',\'show\')" style=position:absolute;top:0;left:' + myLeft[ii] + ';FILTER:alpha(opacity=25); src=' + pic[ii].name + '></a>')}
myPause = setInterval("startScrolling()",1000) //1000 inicia en 1 seg
saludos