Emoticons Not Working Properly in Chat Plugin

I've just downloaded the chat plugin, but most of the emoticons are not posting correctly when you click on them. If you type the shortcode instead, for example :cool: then it seems to work...

I'm testing this locally and have defaulted to Wordpress 2013 theme to see if that made a difference, but it doesn't. I'm using the latest version of Wordpress and BuddyPress

Please advise?

Thanks
Rob.