I Don't Understand How to Actually Chat

I have set up chat and have it installed on a test site on my local server. I have it inserted in a post as well as on a site-wide basis. What I don't understand is, when someone starts a chat - where is the 'receiving' line. Where does the message go to? Other services I have tried (such as Zopim) have a control panel from which you can chat from as well as the ability to sync into other chat systems (such as Google talk). How does this one work?

Be well,