I really don't know whats wrong with it except for the fact that it's a cheap piece of crap!! I am still hunting for a chat application that doesn't cost $5,000.00 like most of them do!
They are based in Phoenix and have a chat that works very well. I do not know the cost of the system, but it is supported by advertising. The system does not allow private chats (not stable), but works very well for groups.