IM is calling localhost/im/friendlist instead of localhost/drupal/im/friendlist

Hmmm... haven't heard of this problem till now. i'm not sure why it's doing that. could it depend of your apache configuration? you might try adding an entry in your hosts file ( /etc/hosts in linux, don't know about Mac or Windows).

if you are running linux, and can tell me what your www root is, and where in relation to that your drupal index.php is, i might be able to figure it out.

Yes, it does call the server periodically to refresh the friend picker as well as to check for new msgs. This depends on the configuration settings (admin/settings/IM) - it defaults to every second for msg checking and every 10 seconds for the friend picker.

subscribing ... suspect I'm having the same issue, refer initial comment, "yet IM is calling http://localhost/im/friendlist." How do you know that?

Friendlist is actually the name of a callback withing IM. I suppose that was a bad name. It has nothing to do with any module with a similar (or identical) name.

BTW - sorry I seem to have missed your quick reply on the 5th... I'll see if I can recreate the problem now.

Good news is that ... I've recreated the problem locally.
Bad news is that i'ts late at night and i'm too tired to do anything now.

I'm about to post up a new release and I'll include this fix with it. Hopefully tomorrow, but maybe not until the weekend.

Thanks for your patience..

OK I think we're good to go. I just committed the fix. I hope it works for everybody. The new tarball for downloaded should be ready later today, tomorrow latest.

I'd appreciate any feedback on whether the problem is fixed for everyone !!

Good luck