#2 Jun 10, 2006 03:35
Depends on what you upgraded from. I'm not sure when, but at some point b2evolution decided to ship without smilies enabled. In 1.6 you go to your settings tab then plugins subtab and 'turn on' smilies. After that I think you'd have to go back and edit posts that should have had smilies but didn't and check the 'smilies' box, but it might automagically do that for you.
Bottom line is smilies are not on by default, so you turn them on via your settings||plugins tab.