I read where you are working on IE8 - please also test with IE6. I use this version quite a bit because it has been stable. But with IE6 I don't get the header about the post text entry box that allows for all the font changes and links and the smileys to not appear on the right side (except if I choose "go advanced". I am now using my daughters computer which has Mozilla on it where all this stuff works. Basically my screen looks nothing like this (I have nothing where you have drawn the arrow pointing to the link insertion - no font, bold , italic, etc - it's all missing).
Just one comment - Please consider a rigorous regression testing process from now on.