Do you get any error messages when you attempt to save the options? Have you tried deleting the plugin, reinstalling? Also-one thing I noticed after upgrading to WP2.0-if you have the built-in editor enabled, it wouldn’t allow me to click a smilie and insert to a post. I would try reinstalling the plugin, enable it, turn off the text editor (Users/Your Profile-uncheck “Use the visual rich editor when writing”) and try a test post.