I recommend using the plugin: More Smilies
http://mattread.com/projects/wp-plugins/more-smilies/
Easy to use and a walkthrough in the set up of the plugin.
I did a google search on the smilies issue and stumbled across this little gem:
More Smilies:
http://mattread.com/projects/wp-plugins/more-smilies/
The instructions are simple and easy to follow a lot less than wp_grins. It also incorporates other smilie packages which allow the user to select the smilie package they want for their posts and comments.
Hope this was of help 😛