Acronyms

Acrnoym = An initialism that is also a usable word. Radar, laser, etc.
Initialism = An abbreviation consisting of the initial letters, often pronounced separately. CPU, BGP, RIP, etc.

I would say that lol is now an acronym; it gets treated like any other word: I lol'ed. I'm lol'ing at you. Lets go lol at this fucker.

EDIT: The only real time I use acronyms/initialisms is when they apply to the subject that I am talking about. Often times, this involves heavy geek talk so all kinds of network or tech related jargon gets tossed back and forth, much of it unintelligable to normal people.

Jam it back in, in the dark.