It hides the chat in a slimline at the bottom of the webpage window--but you can pop the chat out so it's its own little window, so long as you don't close the facebook page. So now I have a facebook tab always open (for the last week or so, since I ran into someone on facebook chat that I'd been trying to get in better touch with). :)
Friends getting your attention is definitely a hazard.
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Friends getting your attention is definitely a hazard.