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Great news someone.
I too think the Anant Garg version would be more simple to port. Was dabbeling a little with this too to see how it could be done.
From a block I encountered several problems.
1) The css disables the scroller and gives blank screan in browsers except FF
2) The username is undefine even if $_session['username'] is define in both chat.php and theme.
I did discover though that only way to keep url relative in ajax is to paste chat.js directly in the html and change the get urls to '<{xoops_url}>/chat.php?so-on-so-on'
Maybe it can be implimented directly into themes as a plugin with the sql as a function in chat.php ?