Hi Bill,
If you want to run the chat daemon, you'll need SSH access to your server. Assuming you have, check out this thread and just follow the instructions. Be warned however, that there is curerently an issue with the chat daemon stopping after a few days for no good reason in 1.5.3+ (at least for me there is) and a bug report has been submitted. Vote for it at the bug tracker.
HTH
Matt
Chat
Chat room not working
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