It shows when your friends online but it makes it possible to chat with any member, if you click "online now" label on their profile, right under the avatar.
We wil soon make it possible to switch between friends-only and for-everybody modes.
The new build has been released. Update your Instant Chat, the issue with Internet explorer has been fixed.
Don't forget to clear your browser cache after the update.
I wished you'd produced this earlier - I now have a paid to chat service on my site that I got from elsewhere and I'm sure I could have used this instead! Oh well!!!