[Plugin: Smilies Themer Toolbar] Not Compatible With jQuery v.1.6.4

This plugin is not compatible with jQuery v1.6.4.

The latest jQuery version that works is jQuery v1.4.4 (which is bundled with WordPress 3.1.4, AFAIK). When I updated the jQuery to v1.6.4, it stops working.

Any chance to make it compatible?

Here is the Javascript included in this plugin:

/* <![CDATA[ */
(function($) {
	/* OnClick action */
	$("#smilies_toolbar img").click(function() {
		var text = $(this).attr('alt');
		/* get an html escaped version of the text: */
		tempdiv = $('<div/>');
		text = tempdiv.text(text).html();
		tempdiv.remove(); // Free up memory
		var commentbox = $("form[action$=wp-comments.php] textarea:visible");
		if (!commentbox.length) return;
		commentbox.insertAtCaret(text);
	});
	$("#smilies_toolbar img").css('cursor', 'pointer');
})(jQuery);
/* ]]> */

http://wordpress.org/extend/plugins/smilies-themer-toolbar/