One key thing with the RRDD is there is no trace of the letter in the field between the letter and the rim. The subject coin does show the leter between the two. I would say this is the result of die wear. We know that die wear can cause a "doubling" effect or a radially outward "stretching of the letters. Usually you just see this between the letters and the rim. But if during the strike the coin picks up this stretched image and then the edge of the coin rises up to fill the rim, you should see that "stretched" image of the letter running from the letter, across the field, and up onto the top surface of the rim. That would match what we are seeing on the op coin.
With the coin in hand I find I must retract my original conclusion that the extra letters on the rim represent die deterioration. It now appears that this indeed a case of rim-restricted design duplication. The design rim is flattened between the letter traces, and the same pattern of die flow lines that appears in the coin's field has been transferred to the design rim. This is the first case of RRDD I've encountered in a quarter.
While rummaging through a container of minor errors, I found a 1979-D dime with RRDD involving the last few letters of LIBERTY. Years ago I had dismissed it as die deterioration since, like the quarter, it's a late die state. Both coins will appear in my Coin World write up week after next.
I have a hunch that such errors are more common than anyone realizes. But the rims on these dimes and quarters are so thin, that the extra elements are easy to miss or dismiss as die deterioration. I'll be keeping my eyes open from now on.
I love having something new to look for! Thanks for bringing this up Tommy. Proof that no question is a dumb question!
This coin made this week's Coin World (December 30). Mike Diamond's article about rim restricted design duplication.
I hope the RRDD coins are worth something , I have lots of the presidental golden dollars with this anomaly .
Here's the public domain version of the article: http://www.coinworld.com/articles/die-struck-letters-on-rim-of-coin-are-mistake