QUOTE
"I am a wizard," Neville said tentatively, "but not a very good one."
That's correct. The problem with the other:
QUOTE
"I am a wizard," Neville said tentatively. "But not a very good one."
is that "But not a very good one" is a sentence
fragment (big no-no!) because it doesn't have a subject. MsCat is right is saying that it's "implied" - which is a fancy way of saying "we all know what he means" - but it's still technically incorrect.
Almost all punctuation goes
inside the quotation marks.
"What did you say?" asked Harry.
Seamus said, "I love playing the lowland pipes."
One exception is the semicolon.
This charm is called the "protean charm"; the name comes from the Greek shape-shifting sea-god, Proteus.
That help anyone?