i know php is not an event based language thus cannot be used in real time chat apps, but i recently seen a chat app using ASP.
it seemed that the chat dialog was updating without refreshing the page, hows this possible?? can it be done with PHP??
No, you have to refresh the page somehow to get the info from the server. Even if it is an auto-refresh every five seconds or something, it needs some sort of refresh.
Not necessarily true. Do a search for Server Push chats. Also, it's possible to use Flash to do the refreshing part, transparent to the user and make a smooth scrolling chat.