1. She said, "Are you happy?"

2. She asked, "Are you happy?"

3. "Are you happy?", she said.
4. "Are you happy?", she asked.

5. "Are you happy?", said the lady.
6. "Are you happy?", asked the lady.

7. "Are you happy?", said she.
8. "Are you happy?", asked she.
------------------------------------
In terms of word order, Are #7 and #8 correct? What about the others? Am I using punctuation marks correctly?

Because he's asking question, #2 is correct. You'll hear people use #1, but they're not quite accurate.

None of the others are correct because of the extra comma in each. If you remove those commas, though, #s 4, 6, and 8 will be correct.

In terms of word order, all of the sentences you provided are grammatically correct. The placement of the quotation marks around the direct speech and the use of punctuation marks, such as commas and question marks, are appropriate in each sentence.

Regarding sentences #7 and #8, while they may not be commonly used in modern English, they are still grammatically correct. "Said she" and "asked she" are alternative ways of ordering the sentence, with the subject pronoun "she" following the verb "said" or "asked" instead of preceding it. This is known as inverted word order or subject-verb inversion. It is less common in modern English but is occasionally found in formal or literary writing.

Here's a breakdown of the use of punctuation marks in each sentence:

1. She said, "Are you happy?"
- This sentence is correct. The comma is used to separate the reporting verb "said" from the direct speech that follows.

2. She asked, "Are you happy?"
- This sentence is also correct. The comma is used in the same way as in sentence 1.

3. "Are you happy?", she said.
- This sentence is correct. The comma is placed inside the closing quotation mark to separate the direct speech from the reporting clause.

4. "Are you happy?", she asked.
- This sentence is also correct. The comma is used in the same way as in sentence 3.

5. "Are you happy?", said the lady.
- This sentence is correct. The comma is placed inside the closing quotation mark to separate the direct speech from the attribution.

6. "Are you happy?", asked the lady.
- This sentence is also correct. The comma is used in the same way as in sentence 5.

7. "Are you happy?", said she.
- This sentence is correct. The comma is placed inside the closing quotation mark to separate the direct speech from the attribution. The inverted word order places the subject pronoun "she" after the verb "said".

8. "Are you happy?", asked she.
- This sentence is also correct. The comma is used in the same way as in sentence 7. The inverted word order places the subject pronoun "she" after the verb "asked".