[washingtonboise]

Here's a video showing this mod in action. I wanted to see the functionality so I just tested it out.

http://www.youtube.com/watch?v=gKEmqLpg4NQ

Formatting is per line, not applied per word.
Mode is WYSIWYG (you click on red, you see red, *before ever clicking on send)
Can send by hitting return key.
Input is one line at a time, no multi line messages
text size is not about your input, it's about the size of text for the entire chat box. i.e. Everybody types in the same size.
smilies supported, but can be disabled.
features searchable message archive.
Chat box can be placed just about anywhere (very modular)

A picture is worth a thousand words, a video is worth a bazillion of'em.