You need to figure how the smilie is getting into the posts and messages. Disable your modifications and see if it still appears. What version of vBulletin are you running?
Tell your members not to enter their details, I think the domain/folder on which the image is hosted is protected by a login. Whether the site is collecting the Login Information I don't know.
But as you have correctly identified, the problem is with that image. That is what is causing the login to appear, you need to find out how it is getting there.
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