I've been waiting forever for some report on the progress of this module; nothing has been said about it.

In the meantime - I have a use for a chat module, and I wanted to know if anyone has used one that is very stable, that supports moderator abilities and multiple rooms.  In fact - even a non-dotnetnuke web based chat module would be great if the user and security systems were close enough and the product was open source.

I'm willing to pay for a chat solution to be implemented on DotNetNuke sites, I would prefer it to be open source. does anyone have any suggestions?

I was monitoring the news for the chat module quite a while and did in deep searching for a nice dnn chat module, most times I found only some ajax samples. Last week i came across a promising chat for dnn found here: http://www.think5.de
I just got the requested beta from these guys, maybe I can give you more details later on when I have checked this out...

The Beta of the DNN chat module is actually waiting in the release process. Should be out there in a few days.