I have this problem too, exect that only the smiley button works.
I run Debian Unstable with 220.127.116.11 kernel and Gnome 2.6.
Well, if anything it's nice to know we are not alone. I've tried downgrading and upgrading my versions of gtk+ and glib....nothing seems to be helping this. Very weird!
This will happen (only smiley working) if the protocol doesn't support formatted text (e.g. IRC and ICQ).
im experiencing the same issue as well. I am running Fedora Core 3 Test 1 with a lot of rawhide updates and i just installed gaim 1.0.0 and am having this same issue.