I'm developing a site with something similar to the Digg bar at the top. One of the features requested is a live chat using Facebook. Is it even possible to implement Facebook Chat on my site by using Facebook Connect or other methods? And if so, how?
[update] I've seen that it works with Pidgin and Adium, but what I'm looking for is a site based implementation (think AJAX & HTML living at the top of the page).
It appears that the Facebook team has at least begun, if not finished, implementing an xmpp/jabber interface for Facebook Chat. This would allow you to use any XMPP enabled client to connect to Facebook. That said, there's at least one javascript jabber client library available that I can find. Although, you may have to implement a proxy on your web server to allow the JS client to talk to the Facebook server.
Also, I'm not sure how they're doing it, but Meebo has managed to enable Facebook chat integration on their site with Facebook Connect. I haven't found anything mentioning it, but this functionality may be easily available through the Facebook Connect API (documentation).
To answer your question: Yes, it's possible.