It'd be nice if the smiley's plugin did two things:
1. Used XHTML to close the <img> tag - <img /> - this would allow my site to validate (http://validator.w3.org/check?uri=http%3A%2F%2Fraibledesigns.com%2Fpage%2Frd).
2. Use the full URL since most RSS Readers don't support <base href=""/> and therefore the smiley's don't resolve in readers.