Sorry for the delay. I don't usually check the WordPress forums.
It looks like at some point I removed the filter priority from TSE and forgot to put it back in. If you edit the tango-smileys-extended.php file, you can fix the priority by changing line 43 from
add_filter( 'the_content', 'tse_conditional' ); to
add_filter( 'the_content', 'tse_conditional', 500 );
This will make sure that TSE is most likely the last plugin to execute so the other plugin will fire its shortcode first.
If you have any other issues, please start a new thread on my support forum at http://support.slightofmind.net/forum/tango-smileys-extended.