iPod touch Bug? Outlook "smilies" not working properly

I think I've run into a bug in OS 2.0/2.0.1 and I'd like to see whether anyone else is experiencing it before I report it to Apple.

I have my iPod set to receive email from Exchange. If I receive an email sent from Outlook with a 🙂 in it, then I see "🙂" on the preview (when you scroll through the inbox) but it appears as "J" when I open the actual message. Does that happen for anyone else? Did my description even make sense? 😀

This issue still occurs in 2.1. Has anyone else seen it? I'll try to get some screenshots up later.

As promised. Look at the first message.