There is a link floating around that shows what you can redeem the points for. Looks like you have to get 2500 points to redeem them. I saw the link a few weeks back and it looks like 1000 points was $10 and could get you a coffee mug and a couple other things and it all went up from there. Maybe someone else has the link for the redemption? I haven't been to their site in a few weeks so maybe you can even find it directly from jackpot.com, I dunno.
To do the smilies, when you post a message, there will be a link on the left side of the message window that says "smilies legend", you can click on that to show you how to make the different smilies.