The lady is smiling with the colorful dress.
The lady is smiling in her dress.
In her dress is a rephrasing of with the dress.
exists e1 s1 x1 x2.(n_dress(x2) & a_colorful(s1) & Theme(s1,x2) & n_lady(x1) & with(e1,x2) & Actor(e1,x1) & v_smile(e1))
exists e1 x1 x2.(n_dress(x2) & of(x2,x1) & n_female(x1) & n_lady(x1) & in(e1,x2) & Actor(e1,x1) & v_smile(e1))