Purdue OWL provides an excellent example showing quoting, paraphrasing and summarizing in the same paragraph:
In his famous and influential work the Interpretation of Dreams, Sigmund Freud argues that dreams are the "royal road to the unconscious" (page #), expressing in coded imagery the dreamer's unfulfilled wishes through a process known as the "dream-work" (page #). According to Freud, actual but unacceptable desires are censored internally and subjected to coding through layers of condensation and displacement before emerging in a kind of rebus puzzle in the dream itself (page #).
Quoting: "royal road to the unconscious" and "dream-work"
Paraphrasing: "According to Freud, actual..."
Summarizing: "In his famous and influential work..."
For more paraphrasing examples, see Successful vs. Unsuccessful Paraphrasing.
Source: Driscoll, Dana and Allen Brizee. "Quoting, Paraphrasing, and Summarizing." Purdue Online Writing Lab. Purdue University, 14 Dec. 2011. Web. 27 Jul. 2012.
Not sure how to properly paraphrase your source? Purdue OWL has a resource just on that! Click here.
Paraphrasing is taking a small excerpt from your source and putting it into your own words, whereas summarizing gives an overview of the main points from an entire source (e.g., and entire book or article). In both cases, it is important to cite your sources. The video below explains more. For more detail and examples, see Purdue OWL: Quoting, Paraphrasing, and Summarizing.