As for the photos you use in Smilebox:
Your photos are stored locally - Smilebox retrieves them from your computer when you "Get Photos" and saves your creations on your computer in the \My Documents\My Smilebox Creations folder.
The only way for someone else to view them is for you to send your Smilebox creation (with your photos) to that person's email address. Your recipient can view your creation in their browser and can save the photos to their computer. If you want to turn that option off, you can do so by setting that option on your Account Information Page (http://my.smilebox.com).
If you choose to publish your Smilebox creation to your blog or Facebook, then your creation can be viewed in your blog or on your page by anyone who knows the Web address or is listed as a friend.