First: as the plugin author, I have never used the SVN before, so bare with me as I struggle through using it to keep things up to date.
I can NOT stress this enough... WP-LIVE-CHAT is ALPHA Software... I'm working in my spare time, like most of the other authors here, so if I don't reply to your questions in the demo chat room <Mezentius>, please don't think I'm ignoring you.
Yes, the plugin home page is an ADULT site... and the chat rooms on the ADULT SERVER are geared for a MATURE crowd, but there is nothing saying that a blog, by an adult, can not be hosted on an adult server, and the users be Mature.
This would not be a good plugin for say, 'Billy's Birthday Blog', unless of course 'Billy' was over 18.
/* it wouldn't hurt if she was cute, too. */
This is a good plugin for other types of blogs however, Political Blogs, Sports Fan Blogs, RPG and Clan Blogs, Tech Support Blogs, or just as a Help Chat for plugin support issues on other plugins.
I will not be releasing a NON-Adult-Server version, or a version that will work with YOUR IRC server. I run my server with a very relaxed TOS, and I'd like to see it grow before I add to my competitor's servers.
I will however encourage anyone who wants to, to create their own version, and will even host updated user submitted, TOS compliant, versions under the same SVN location.