[Digital Jedi]

I don't recognize the structure of your conditional myself. But if it is a valid conditional, then you have Usergroup 2 as one of the authorized viewers at the start of your conditional, right after Usergroup 1.

Personally, I would go with the standard vBulletin conditionals. To hide information from a specific usergroup, you would use:

<if condition="is_member_of($bbuserinfo, X, Y, Z)">

Where X, Y and Z are your Usergroup IDs.

Now, I'm not sure why you have a nested conditional in there, because I imagine Usergroup 2 is the only group restricted from viewing the chatbox. All you'd need to do is put the NOT AUTHORIZED message after the <else /> tag.

<if condition="is_member_of($bbuserinfo, X, Y, Z)">
 
CHAT CODE HERE
 
<else />
 
YOU ARE NOT AUTHORIZED MESSAGE HERE
 
</if>