My relatively newly acquired Samsung Galaxy GT-I9000 running Android 2.1 should have a next button around the bottom right of the keypad as per manual/online information. However, I can only see a Smiley button which doesn't have newline as one of the options. Is there a user configurable option to switch between Smiley and Next? If yes, how to invoke?
This is quite normal on the default keyboard. The smiley should only shows if you're typing in a single-line textbox (i.e. it have been configured so you cannot add newline), and there is only a single textbox in the page, and the app did not bind custom functionality to it.
Is there a user configurable option to switch between Smiley and Next?
Not as far as I know. The developer of the app you're currently using gets to decide the "type" of keyboard that is shown by default, and they can customize the action button.
If yes, how to invoke?
Try opening the browser, while on the browser, the smiley should turn into newline button (e.g. on multiline form input), or Go button (on the address bar), or sometimes Next button (on pages that have multiple single-line input).
I have Jelly Bean 4.2.2 on a HTC One S and Swype 1.4 installed. I was ready to go on a shooting spree when I thought I couldn't hit a return button to start a new line!
I opened a SMS thread, tapped Menu > Settings and scrolled all the way down. There is an option at the bottom called Soft keyboard type. Open that and you get --
<> Smiley key
<> Enter for a new line
Select the bottom one and you're golden!
This setting will change it for both the stock Android keyboard and Swype.