If you use Outlook 2007, then some smileys will get rendered as emoticons.
This is a function of MS Word, which is the email editor for Outlook 2007.
If Word is the default editor for Outlook 2002/2003, then a small set of
emoticons work there too.
If you want fancyshmancy yahoo-like smileys, then you have to look at third
party plugins such as: http://www.maxplugs.com/emomail/
There is no guarantee that the recipients will be able to see these embedded
images though. They may have inbound email converted to plain text for
example.
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