I’ve released WP Grins, a clickable smilies hack for WordPress. This lets you easily add a row of smilies to the post form in the admin area, and/or the comment form on your blog.
Like the Quicktags, the smiley inserting is cursor-aware. It inserts the smiley tag where the cursor is as long as your browser supports it (IE and Mozilla are fine).
You can grab it from my WordPress Hacks page.
This post is part of the project: WP Grins. View the project timeline for more context on this post.