I tried out the new impulse reactor stuff... Definately cool ideas and better connections. However here are the problems I have with the new chat UI.
1) It does not belong. Its like this window that just does not belong where it is. Feels hacked on. Does not feel like its really part of demigod. (skin is great, but its more along the lines of it's positioning...) You need to focus on developing a "chat window" of sorts, but it should be embedded into demigod by the dg developers. The window should work on it's own, but don't make it a tacky, free-floating, hacked-on feeling thing.
2) Resize does not change cursor to a resize cursor. I guessed that the lower-right corner resized the windows, but it is not at all obvious.
3) No ability to switch away from chat window (lose focus). I can't position it and chat both local and irc at the same time. I can only chat in irc, then make the window dissapear, then back to local. Would be nice if I could gain focus on my in-game chat, then focus back onto IRC.
4) No "rooms"... or at least no nice interface for it. I am sure if I look up irc i can find all sort of nice things, but in the end I doubt most people will care.