Chat is very resource hungry

I noticed that whenever I inserted a Chat window either into a post or using it on the home screen of my WP site the entire site was coming to a grinding halt and it would take long period for the chat items to display on the chat window. Chat text would also appear in the wrong order compared to how they were sent. I ran some tests on the server and whenever chat is initiated and say just with two users they chat over one session with very short text input, the server CPU hits 100% and also 100% of memory usage. Is this a known issue for the chat plugin? As it stands I have deactivated this plugin as it is not usable in its current form.

Let me know of any optimisations… I am also running the latest update for Chat.