I have the same problem in 10.10 with all latest updates applied
(Empathy says it is version 2.32.1 in the About box). It's quite an
annoying niggle where I'm using it to post code snippets all day.
** Changed in: empathy (Ubuntu)
Status: Incomplete => Confirmed
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https://bugs.launchpad.net/bugs/660754
Title:
Turning off "show smileys as images" does not persist after closing
the dialog.
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