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I thought about using digichat as an old client of mine uses it for his chat website but its resource and bandwidth heavy. *be advised* If I was going to run some full on chat site then it might be a worthwild investment. However for the time being a free copy of parachat works pretty good. Their paid copy is pretty cheap at 4.95/mo and another one at 17.95/mo (which can do banners ect ect)
Digichat does have some cool features though and their latest version does webcams I believe.
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