Paper towels didn't do this. A dime will get you a dollar, that chick was busted out.
Also, you can't save every chick. Sometimes no matter what you do, chicks will die. I hate when it happens!
Curled toes is usually caused by hot/cold spots and wild humidity swings during incubation/hatching, or in very rare cases genetic problems. Either of which are exacerbated by people busting chicks out of the shell, that should be their coffin.
Splay leg is caused when chicks have to stand on a slick surface, because their warm jello cartilage hasn't reached the Knox block stage, as well as bones not calcifying yet (It's a quail thing). It's a genetic trade off for their rapid hatch time. After 3 or 4 days, they should be able to stand on most any surface. Glass, wire, and....JUST SHOOT ME NOW...NEWSPAPER!
Acceptable surfaces for 1-5 day old chicks for me: Paper towels. The good stuff, not the stuff you steal from the toilet at work. I don't want to recommend any brand names, but I use the most expensive paper towel known to man. It rhymes with COUNTY. I use plastic totes with a thin layer pine shavings, topped with the paper gold for 5-7 days then it's on to shavings, or the test wire bottom pen.
Other surfaces include, but are not limited to: Wood shavings, rubber shelf liner, or cloth/towels. Chicks can stand fine on any of those, they all have their up and down sides, but are fine for giving traction to newly hatched quail fuzzy butts.