How to create chat rooms using WordPress for your users

A really interesting plugin was brought to our attention yesterday. Normally when communities want to chat, they use Twitter:

For private chats, we know that some people use Skype, others use IRC. Well, Brad Williams and the WebDevStudios team have started developing a new chat room plug-in that allows you to create chat rooms via the WordPress administrative interface for user participation. Although this plug-in is in its infancy, it has great potential for sites with many users.

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If you don’t like the video or need further instructions, read on. All you need to do is install and activate the Chat room plug-in. When activated, you will see a new added menu option called Chat room. You can add chats just like you will add a page.

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Only logged in users can participate in the chat. You will give the user the link to the chat room, which is just like a page.

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This plugin has been out a few days, so it’s still very new. Some features are missing that would make this plugin even more interesting. A list of people in the chat room would be really great, so that other users can see who is active in the chat. The chat should have the possibility of being in italics, bold, underlined, etc. Something like quick form comments tags would be clean. Another feature suggested by someone was the possibility of adding a list of forbidden words. Do you think you will use this plugin on your site? What are your thoughts?