The issue is very simple: Clicking on smilies, they don't work. Disabling all plugins, it's the same
Could you provide your forum URL and a temporary testing account?
Username: test
Password: 123456
Try this:
Navigate to:
AdminCP -> Templates & Style -> Templates -> Your Theme's Templates -> Ungrouped Template -> headerinclude
Find:
<script src="http://code.jquery.com/jquery-latest.js"></script>
Replace with:
<script src="http://code.jquery.com/jquery-latest.js"></script>
<script type="text/javascript">jQuery.noConflict();</script>