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answers:

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I would like to build a web based instant messaging application where people can exchange files and also edit documents like word from scratch. People should be able to edit a document collaboratively and also chat simultaneously. Are there any tools that i can use to ease my work particularly in python or Php sql,ajax,java or c++?

A: 

A friend of mine was doing something similar. He used TwistedWords lib (http://twistedmatrix.com/trac/wiki/TwistedWords) and coded a lot of his project in Python. Also TwistedWords is multi-protocol, not just OSCAR.

As for modifying documents, what kind of docs are we talking about here? OpenOffice, MS Word/Excel, plaintext?

kmarks2
i meant modifying documents like MS Word and OpenOffice collaboratively.
Wasswa Samuel
Also when i checked on twisted words, it has limited functionality.Can i develop a full fledged chat application that can support many users?
Wasswa Samuel