The user is using the S2 Generator style and upon examining the source code I found that the problem is with S2, and not just Deadjournal's version (thought maybe we were behind on an update or two but it is the same on Livejournal). The S2 Generator style formats the mood icons like so:
<img src='SRC' width='WIDTH' height='HEIGHT' align='absmiddle'>
I'm not sure why single quotes were used instead of a regular quotation mark (") for that except that maybe it was a programming issue (or maybe it was just not noticed?). The problem is... when a moodset has an abreviation in its name for possession (such as "blue_meep's_jellies") then it cuts the source of the image off early and the browser doesn't in turn show the image. Maybe you didn't plan on abreviations being used in the moodset names, but if it were changed to a regular quotation mark then this problem wouldn't exist.
I don't know much about S2 and how hard this would be to change (it seems like it would be pretty easy to change actually) so I didn't know if I should submit a bug report to zilla since it seems like all brad (or another programmer) would have to do is change it and then everyone can update on CVS.
Does this warrant getting its own bug report or can someone upstairs change it real quick without anyone noticing? ;)