The chat daemon (mod/chat/chatd.php) isn't usable in php5. The problems include:

• tries to use all cpu time constantly
• randomly exits during usage

Both of these problems can be avoided by using php4 but most current systems no longer have php4 installed.

The chat system requires the use of separate chat daemon for any reasonable amount of users. On the other hand moodle 2.0 requires the use of php5.2.8 or newer. Therefore chat module should be removed unless some coder takes time to upgrade the module.

Additional problems: chatd.php doesn't allow use of ipv6 addresses. This is a definite problem as all other parts do support them. I'm one of the network admins who already has one classroom of Windows computers that don't have ipv4 addresses any longer.