functions.php - hardcoded HTML (1.8 - beta 3)

After revamping new thread template i have noticed that w3 validator is returning error reports on few areas. I have double checked my templates i have noticed that smilieinsert_smilie has a tr tag wrapped around it (for 3 smilies in each row), since all hardcoded HTML was pushed into templates i started to digg around and found out that that area still has some hardcoded HTML.