I just found this on the Grey Sparling PeopleSoft Expert's Corner: Integrating GoogleTalk with PeopleSoft . I apologize for not pointing it out when Chris posted it back in 2006. Even though this post describes how to integrate with GTalk, this same code could be used to integrate with any XMPP chat server. Many companies use the XMPP protocol for their internal enterprise chat servers.
Nice work Chris! Thanks for the great idea!