How do I stop emoticons from going on a separate line?

Hello, Sorry to bother you all again -

I'm having a small issue with the chat plugin - every time an emoticon is used in chat, it appears on a new line and also leaves a blank line below it before the next message appears. Is there anyway to stop this from happening? Url of the page is http://www.virtual-aerobatics.com/live-shows It's not a major issue, but it doesn't look the best and when we have a lot of messages in quick succession, it obviously elongates the chat quite substantially.

ATB,

Rob