I am not sure of how you are implementing this but since you are trying to pass a phrase: "Both" or "Daily Task" then I would guess that the quote are being dropped and your criteria is probably ending up looking like "Both or Daily Task".
I've ran into a similar situation once and the only way I worked around it was using a variable. Let's call it sVariable. If memory serves me correctly, I used double quotes to store the quotes in the variable. So it might look something like ...
sVariable = IIF([Combo141]=1,"""Both"" or ""Daily Task""","project")
Again, this caused me much frustration at the time because I probably did 30 steps to get it to work and there is probably is a quicker and cleaner way. I wouldn't trust my memory that much (I don't have a copy of the db anymore to check) but I do know there is an issue if you refer to a form control from the QBE and you want the quotes to pass with it.
-dK