In Smoothwall 2, there's an application that updates
/etc/blackhole.conf, but it hasn't done that in a while because the old site www.bleedingthreats.net doesn't provide spyware blacklists updates.A replacement can be found from malwaredomains.
Simply edit:
/usr/local/bin/blackhole.pl
Change $host entry to www.malwaredomains.com
change $get entry to /files/spywaredomains.zones
That's all.