Here is how to do chat on iGoogle...
[We're pleased to announce that starting today we are extending the feature to a larger set of iGoogle users.
Similar to the chat feature on Gmail, people will be able to send instant messages to their colleagues, friends and family straight from their iGoogle page. We've made this easy. If you're already a Gmail chat user, all your current chat settings will apply to iGoogle, so things will work the way you like in both places. But even more exciting is that you'll even be able to chat with friends who don't yet have a Gmail address — any email address will do. All you have to do is invite them as a chat buddy, and if they accept your invitation and sign up for iGoogle with their personal email account, their name becomes just a click away right on your page. Don't want to be bothered while you're checking out the latest news or reading your emails? You have a couple of options to hid the chat feature. You can either click the chat “options” link and selecting “hide chat,” or sign off completely by selecting "sign out of chat."
It's worth noting that this feature may have some kinks, so we ask for your patience as we work through them. Here at Google, it's common practice for us to involve our users as early possible so we can make sure we get it right. We'll also be rolling this feature out slowly, so if you don't see it on your iGoogle page and you simply can't wait to check it out, feel free to opt in by going to www.google.com/ig/v2invite.]