Apple is now allowing you to add the Emoji keyboard on your new iOS 5 without any tricks or jailbreak. Emoticons are a set of cool icons like in the picture above.
This will work on any iDevice running iOS 5, iPod, iPhone and iPad.
To activate emoticons, go to Settings -> General -> Keyboard -> International Keyboards -> Add New Keyboard -> Emoji.

You now have another keyboard on your iOS and you can use it anywhere. You will see a globe icon on your keyboard and this will bring up your Emoji icons. There, you can choose from several Emoji categories.