The radio button above "Anonymous" in bold is the one that should be selected if you want to comment anonymously; the one *below* it, which is the default, corresponds to "LiveJournal," which should already have you logged in. Don't enter a password or LJ will get confused and start throwing toys out of its pram. ;) You only need to enter a password if you're not logged in. The other posting options are there for the benefit of people who come here via the jamiebambernews.com URL, or who follow us on Twitter, if they don't have an LJ but don't want to comment anonymously, either.
As for the smiles... yeah, those turned up out of nowhere not too long ago, to our surprise and annoyance. We keep meaning to investigate how to turn them off but damned if real life doesn't make housekeeping difficult sometimes. It's on our radar, though.