I'm going to go with "it has trivially exploitable xss and csrf bugs" for 100 points, thanks.
So if you're find with running a completely insecure IM system, go for it, just make sure you put it on a completely separate domain to the rest of your system.
Also, my 5 minute audit found that integration with existing auth systems is probably dangerous, since there are a few cases where the username is used unsanitised in SQL statements; it's not exploitable with the system being stand-alone since you can't register them, but if you populated the db with users from another system, you could get pwned. This goes for running it on the same box as other PHP scripts too, since the input for that bug comes from $_SESSION['username'].
And given the amount of xss/csrf, a review of the admin functionality would be in order to make sure it doesn't get your server pwned.
So unless you're going to do an audit the code properly, I wouldn't deploy it, but given I just realised how old this thread is, maybe you already have.
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