It makes a hell of a difference doesn't it. not sure whether your aware that you can set the amount of smilies in each row in your admincp >> vbulletin options >> Message Posting Interface Options. This way you don't have to many rows and can makes use of the space.
You may want to take a look in there just in case you add more smilies in the future and organize them even more efficiently.
Yep I already set that in ACP. I have my forum running at 1200px wide, and my message box form at 1000, so I can get a good 40 across on a single row. Free's up lots of space for more message box room. Thanks again.