aha !
OK start by:
1. Look & Feel >
2. Manage Skin Sets & Templates >
3. Manage Skin Sets & Templates
then click on IP.board, expand the skin_chat, and click on chatRoom template bit, copy and paste everything in it to a backup text file (you know just in case).
then replace it with this code: <script type='text/javascript'>
// Basic variables
var roomId = {$options['roomId']};
var userId = {$options['userId']};
var userName = '{$this->memberData['members_display_name']}';
var accessKey = '{$options['accessKey']}';
var serverHost = '{$options['serverHost']}';
var serverPath = '{$options['serverPath']}';
var ourUrl = '{$options['ourUrl']}';
USE_RTE = 0;
// Chat settings
ipb.chat.condenseTime = parseInt({$this->settings['ipchat_limit_time']});
ipb.chat.maxMessages = parseInt({$this->settings['ipchat_max_messages']});
ipb.chat.moderator = parseInt({$options['moderator']});
// Set up templates
ipb.chat.templates['msg-1'] = new Template( "<li class='post chat-message #{ownclass}'><label>#{username}</label> <div>#{message}</div></li>" );
ipb.chat.templates['msg-2'] = new Template( "<li class='post chat-notice'><label>#{username}</label> <div>#{action}</div></li>" );
ipb.chat.templates['msg-3'] = new Template( "<li class='post chat-me'><label>#{username}</label> <div>**#{message}**</div></li>" );
ipb.chat.templates['msg-4'] = new Template( "<li class='post chat-system'>{$this->lang->words['sys_message_pre']} #{message}</li>" );
ipb.chat.templates['msg-5'] = new Template( "<li class='post chat-moderator'><label>#{username}</label> <div>{$this->lang->words['_kicked']} #{extra}</div></li>" );
ipb.chat.templates['msg-K'] = new Template( "<li class='post chat-moderator'><div>{$this->lang->words['youve_been_kicked']}</div></li>" );
// Set some language vars
ipb.lang['time_am'] = "{$this->lang->words['time_am']}";
ipb.lang['time_pm'] = "{$this->lang->words['time_pm']}";
ipb.lang['entered_room'] = "{$this->lang->words['entered_room']}";
ipb.lang['left_room'] = "{$this->lang->words['left_room']}";
ipb.lang['chat_kick_user'] = "{$this->lang->words['chat_kick_user']}";
ipb.lang['chat_ban_user'] = "{$this->lang->words['chat_ban_user']}";
ipb.lang['cant_kick_self'] = "{$this->lang->words['cant_kick_self']}";
ipb.lang['youve_been_kicked'] = "{$this->lang->words['youve_been_kicked']}";
// Emoticons
ipb.chat.emoticons = \$H({ {IPSLib::fetchEmoticonsAsJson( $this->registry->output->skin['set_emo_dir'], true )} });
ipb.vars['emoticon_url'] = "{$this->settings['emoticons_url']}";
ipb.vars['img_url'] = '{$this->settings['img_url']}';
// Sound
ipb.chat.soundEnabled = <if test="cookiesound:|:IPSCookie::get('chat_sounds') == 'off'">0<else />1</if>;
ipb.chat.soundOnImg = "{$this->settings['img_url']}/bell.png";
ipb.chat.soundOffImg = "{$this->settings['img_url']}/bell_off.png";
// Chatters name formatting
<foreach loop="formatname:$chatters as $data">
ipb.chat.nameFormatting.set( {$data['user_id']}, [ "{$data['member']['prefix']}", "{$data['member']['suffix']}" ] );
</foreach>
</script>
<script type='text/javascript' src='{$this->settings['public_dir']}js/ips.editor.js'></script>
<h2 class='maintitle'>{$this->lang->words['chat_page_title']}</h2>
<div class='generic_bar'></div>
<div id='ipschat'>
<div id='chat-container'>
<div id='scrollbar_container'>
<div id='messages-display'><span id='initial_message'>{$this->lang->words['please_wait_chats']}</span></div>
</div>
<form id='chat-form' action='#' method='post'>
<input type='hidden' name='1_wysiwyg_used' id='1_wysiwyg_used' value='0' />
<input type='hidden' name='editor_ids[]' value='1' />
<div class='ips_editor' id='editor_message'>
<div id='message_controls' class='controls'>
<ul id='message_toolbar_2' class='toolbar' style='display: none'>
<li>
<span id='message_cmd_bold' class='rte_control rte_button' title='{$this->lang->words['js_tt_bold']}'><img src='{$this->settings['img_url']}/rte_icons/bold.png' alt='{$this->lang->words['js_tt_bold']}' /></span>
</li>
<li>
<span id='message_cmd_italic' class='rte_control rte_button' title='{$this->lang->words['js_tt_italic']}'><img src='{$this->settings['img_url']}/rte_icons/italic.png' alt='{$this->lang->words['js_tt_italic']}' /></span>
</li>
<li>
<span id='message_cmd_underline' class='rte_control rte_button' title='{$this->lang->words['js_tt_underline']}'><img src='{$this->settings['img_url']}/rte_icons/underline.png' alt='{$this->lang->words['js_tt_underline']}' /></span>
</li>
<li>
<span id='emoticons_custom_menu' class='ipbmenu rte_control rte_button' title='{$this->lang->words['js_tt_emoticons']}'><img src='{$this->settings['img_url']}/rte_icons/emoticons.png' alt='{$this->lang->words['js_tt_emoticons']}' /></span>
</li>
<li>
<span id='message_cmd_link' class='rte_control rte_palette' title='{$this->lang->words['js_tt_link']}'><img src='{$this->settings['img_url']}/rte_icons/link.png' alt='{$this->lang->words['js_tt_link']}' /></span>
</li>
</ul>
</div>
<div id='message_wrap' class='editor'>
<textarea name="message" class="input_rte" id="message_textarea" rows="3" cols="50" tabindex="0"></textarea>
</div>
</div>
<input type='submit' id='chat-submit' class='input_submit' value='{$this->lang->words['chat_post_button']}' />
</form>
</div>
<div id='chat-online' class='general_box alt'>
<h3><span id='online-chat-count'><if test="$_count = count($chatters)">{$_count}<else />0</if></span> {$this->lang->words['whos_chatting_ttl']}</h3>
<div id='chatters-online-wrap'>
<ul id='chatters-online'>
<foreach loop="$chatters as $data">
<li id='user_{$data['user_id']}'>
<div class='chat-photo'><a target='_blank' href="{parse url="showuser={$data['member']['member_id']}" seotitle="{$data['member']['members_seo_name']}" template="showuser" base="public"}" title='{$this->lang->words['view_profile']}'><img src='{$data['member']['pp_mini_photo']}' alt="{$data['member']['members_display_name']}{$this->lang->words['users_photo']}" width='{$data['member']['pp_mini_width']}' height='{$data['member']['pp_mini_height']}' class='photo' /></a></div>
<span class='names'><if test="modlink:|:$options['moderator']"><a href='#' id='mod_link_{$data['user_id']}' class='ipbmenu'></if><if test="hasname:|:$data['member']['members_display_name']"><span title='{$data['member']['members_display_name']}'>{IPSLib::makeNameFormatted( IPSText::truncate( $data['member']['members_display_name'], 16 ), $data['member']['member_group_id'] )}</span><else />{$data['user_name']}</if><if test="modendlink:|:$options['moderator']"></a></if>
{parse template="user_popup" group="global" params="$data['member']['pp_member_id'], $data['member']['members_seo_name']"}</span>
</li>
</foreach>
</ul>
</div>
<ul class='post_controls' id='chat-controls'>
<li><a href='{parse url="module=ipschat&section=chat&do=leave&room={$options['roomId']}&user={$options['userId']}&access_key={$options['accessKey']}" base="publicWithApp"}' title='{$this->lang->words['leave_room']}'><img src='{$this->settings['img_url']}/cross.png' alt='{$this->lang->words['leave_room']}' /> {$this->lang->words['leave_room']}</a></li>
<li><a href='#' title='{$this->lang->words['toggle_sound']}' id='sound_toggle'><img id='sound_toggle_img' src='{$this->settings['img_url']}/<if test="soundon:|:IPSCookie::get('chat_sounds') == 'off'">bell_off.png<else />bell.png</if>' alt='{$this->lang->words['toggle_sound']}' /></a></li>
</ul>
</div>
</div>
<if test="modmenus:|:$options['moderator']">
<div id='mod-menu-container'>
<foreach loop="$chatters as $data">
<ul id='mod_link_{$data['user_id']}_menucontent' class='kickmenu'>
<if test="nokickself:|:$data['user_id'] == $options['userId']">
<li><em>{$this->lang->words['cant_kick_self']}</em></li>
<else />
<li><a href='#' title='{$this->lang->words['chat_kick_user']}' class='kick_user' id='kick_user_{$data['user_id']}'><img src='{$this->settings['img_url']}/user_delete.png' alt='{$this->lang->words['icon']}' /> {$this->lang->words['chat_kick_user']}</a></li>
<li><a href='#' title='{$this->lang->words['chat_ban_user']}' class='ban_user' id='ban_user_{$data['user_id']}_{$data['member']['member_id']}'><img src='{$this->settings['img_url']}/user_delete.png' alt='{$this->lang->words['icon']}' /> {$this->lang->words['chat_ban_user']}</a></li>
</if>
</ul>
</foreach>
</div>
</if>
<div id='emoticons_custom_menu_menucontent'>
{$emoticons}
</div>
<script type='text/javascript'>
if( $( 'message_toolbar_2' ) ){ $( 'message_toolbar_2' ).show(); }
ipb.editor_values.get('templates')['link'] = new Template("<label for='#{id}_url'>{$this->lang->words['js_template_url']}</label><input type='text' class='input_text' id='#{id}_url' value='http://' tabindex='10' /><label for='#{id}_urltext'>{$this->lang->words['js_template_link']}</label><input type='text' class='input_text _select' id='#{id}_urltext' value='{$this->lang->words['js_template_default']}' tabindex='11' /><input type='submit' class='input_submit' value='{$this->lang->words['js_template_insert_link']}' tabindex='12' />");
ipb.editor_values.get('templates')['emoticons_showall'] = new Template("<input class='input_submit emoticons' type='button' id='#{id}_all_emoticons' value='{$this->lang->words['show_all_emoticons']}' />");
ipb.editor_values.get('templates')['emoticon_wrapper'] = new Template("<h4><span>{$this->lang->words['emoticons_template_title']}</span></h4><div id='#{id}_emoticon_holder' class='emoticon_holder'></div>");
ipb.editor_values.set( 'show_emoticon_link', false );
ipb.editor_values.set( 'emoticons', ipb.chat.emoticons );
ipb.editor_values.set( 'bbcodes', \$H({IPSLib::fetchBbcodeAsJson()}) );
ipb.vars['emoticon_url'] = "{$this->settings['emoticons_url']}";
ipb.editors[ 'message' ] = new ipb.editor( 'message', 0 );
</script>
<!--Iframes used for cross-domain "AJAX"-->
<div id='iframeContainer' style="display:none">
</div>
save, and test :)