Found this program seems alright so far.
It shows the smiley faces in the default txt messaging for Windows Mobile. Oh yea it also has threaded SMS feature.
I put it on my touch for the smiley faces, and I put it on my wife's Treo 700WX. On her phone when the threaded SMS is active, the message list is still shows the individual txt messages, but once you click on one, it puts all the ones for the contact as threaded.
Here's the link:
http://rs77gc.rapidshare.com/files/1...1.68_noxml.cab