Here is what I found that worked for me with vb 4.0.8 I have 232 smiles. Let me know if something looks wrong to anyone with what I have done.
I just imported the product-lynne_smilies_below.xml and I did no edits other than to the editor2.css
I hope that this will help someone
Here is my editor2.css
@charset "UTF-8";
/* editor2.css */
.editor_smiliebox {
clear:both;
height:{vb:math 8*{vb:math 21+2*2}}px;
position: relative;
float:left;
width: 100%;
}
{vb:stylevar editor_smiliebox_smiliesize}.editor_textbox_smilie {
margin-right:0;
}