Index: wp-includes/formatting.php
===================================================================
--- wp-includes/formatting.php	(revision 15432)
+++ wp-includes/formatting.php	(working copy)
@@ -1436,16 +1436,16 @@
 }
 
 /**
- * Convert text equivalent of smilies to images.
+ * Convert text equivalent of smilies to images and make sure text smilies are not wrapped.
  *
- * Will only convert smilies if the option 'use_smilies' is true and the global
+ * Will only convert smilies to images if the option 'use_smilies' is true and the globals 
  * used in the function isn't empty.
  *
  * @since 0.71
  * @uses $wp_smiliessearch
  *
  * @param string $text Content to convert smilies from text.
- * @return string Converted content with text smilies replaced with images.
+ * @return string Converted content with text smilies replaced.
  */
 function convert_smilies($text) {
 	global $wp_smiliessearch;
@@ -1462,8 +1462,15 @@
 			$output .= $content;
 		}
 	} else {
-		// return default text.
-		$output = $text;
+		// If smilies are not converted to images, make sure they're not wrapped 
+		$output = preg_replace_callback( 
+				$wp_smiliessearch, 
+				create_function( 
+						'$matches', 
+						'return "<span style=\"white-space:nowrap\">$matches[0]</span>";' 
+				), 
+				$text 
+		); 
 	}
 	return $output;
 }
Index: wp-includes/functions.php
===================================================================
--- wp-includes/functions.php	(revision 15432)
+++ wp-includes/functions.php	(working copy)
@@ -2849,10 +2849,6 @@
 function smilies_init() {
 	global $wpsmiliestrans, $wp_smiliessearch;
 
-	// don't bother setting up smilies if they are disabled
-	if ( !get_option( 'use_smilies' ) )
-		return;
-
 	if ( !isset( $wpsmiliestrans ) ) {
 		$wpsmiliestrans = array(
 		':mrgreen:' => 'icon_mrgreen.gif',