Hi Bill2 and welcome to Eight Forums. It's good to have you here.
To show smilies, you need to click on the Go Advanced button, which will give more options, including the ability to include smilies in your post.
As regards your avatar, the maximum size currently available here is 80 x 80 @ 19.5KB. Your avatar over on SF exceeds the physical dimensions permitted. I have taken the opportunity to resize it for you, using Free Online Image Editor
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The files attach correctly, but it is probably the file size restriction that is causing the problem, and I would say that they are too restrictive and would certainly need increasing in due course.
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The above image doesn't show for me in the post, but it does when it is clicked on.
The thing is FF displays all of the pictures without issue. As for the size, the jpg sizes were 19.2 KB and 35.5 KB whereas the pgn sizes (the ones that do not show in IE8) were 5.4 KB and 15.4 KB?
Also even though I saved them as pgn, the file extension shown was jpg? Here is your image that would not display in my IE8. It says it is a jpg, but in FireFox is displays and says this is a pgn file?
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To me, this is looking more like a IE8 issue?