A: 

AppEngine only supports HTTP and limits the response time (which makes Comet a no-go).

The only (supported) way is XMPP, but it only supports BOSH protocol, which does not facilitate push from server to clients.

It seems that your only way would be polling.

Peter Knego
Comet is coming; it's currently available to trusted testers.
Wooble
That's great news. Websockets maybe?
Peter Knego
+1  A: 

Partychat an example of an XMPP-based chatroom running on App Engine. And it's open-source.

Jason Hall