diff --git a/activities/chat/ChatActivity.py b/activities/chat/ChatActivity.py
index cb3ada89..07d87626 100644
--- a/activities/chat/ChatActivity.py
+++ b/activities/chat/ChatActivity.py
@@ -1,13 +1,16 @@
 import dbus
 import random
+import logging
 
 import pygtk
 pygtk.require('2.0')
 import gtk
+import gobject
 
 from sugar.activity.Activity import Activity
 from sugar.LogWriter import LogWriter
-from sugar.presence.Service import Service
+from sugar.presence import Service
+from sugar.chat.Chat import Chat
 from sugar.chat.BuddyChat import BuddyChat
 from sugar.p2p.Stream import Stream
 from sugar.presence.PresenceService import PresenceService
@@ -17,21 +20,24 @@ _CHAT_ACTIVITY_TYPE = "_chat_activity_type._tcp"
 
 class ChatActivity(Activity):
 	def __init__(self, service):
-		Activity.__init__(self, _GMAIL_ACTIVITY_TYPE)
+		Activity.__init__(self, _CHAT_ACTIVITY_TYPE)
 		self._service = service
+		self._chat = BuddyChat(self._service)
 	
 	def on_connected_to_shell(self):
+		self.set_tab_text(self._service.get_name())
 		self.set_can_close(True)
-		self.set_tab_icon(icon_name="im")
+		self.set_tab_icon(name = "im")
 		self.set_show_tab_icon(True)
 
 		plug = self.gtk_plug()		
-
-		chat = BuddyChat(self._service)
-		plug.add(chat)
-		chat.show()
+		plug.add(self._chat)
+		self._chat.show()
 
 		plug.show()
+	
+	def recv_message(self, message):
+		self._chat.recv_message(message)
 
 class ChatShellDbusService(dbus.service.Object):
 	def __init__(self, parent):
@@ -42,8 +48,8 @@ class ChatShellDbusService(dbus.service.Object):
 		dbus.service.Object.__init__(self, bus_name, object_path)
 
 	@dbus.service.method('com.redhat.Sugar.ChatShell')
-	def open_chat(self, message):
-		self._parent.send_text_message(message)
+	def open_chat(self, serialized_service):
+		self._parent.open_chat(Service.deserialize(serialized_service))
 
 class ChatShell:
 	instance = None
@@ -55,25 +61,49 @@ class ChatShell:
 	get_instance = staticmethod(get_instance)
 
 	def __init__(self):
+		ChatShellDbusService(self)
+
+		self._chats = {}
+	
 		self._pservice = PresenceService.get_instance()
 		self._pservice.start()
 		self._pservice.track_service_type(BuddyChat.SERVICE_TYPE)
 
 	def start(self):
 		port = random.randint(5000, 65535)
-		service = Service(sugar.env.get_nick_name(), BuddyChat.SERVICE_TYPE,
-						  'local', '', port)
+		service = Service.Service(sugar.env.get_nick_name(), BuddyChat.SERVICE_TYPE,
+						  		  'local', '', port)
 		self._buddy_stream = Stream.new_from_service(service)
-		self._buddy_stream.set_data_listener(getattr(self, "_recv_message"))
+		self._buddy_stream.set_data_listener(self._recv_message)
 		self._pservice.register_service(service)
 
-	def _recv_message(self, address, msg):
-		print msg
+	def _recv_message(self, address, message):
+		[nick, msg] = Chat.deserialize_message(message)
+		buddy = self._pservice.get_buddy_by_nick_name(nick)
+		if buddy:
+			if buddy == self._pservice.get_owner():
+				return		
+			service = buddy.get_service_of_type(BuddyChat.SERVICE_TYPE)
+			name = service.get_name()
+			if service:
+				if not self._chats.has_key(name):
+					self.open_chat(service)
+				self._chats[name].recv_message(message)			
+			else:
+				logging.error('The buddy %s does not have a chat service.' % (nick))
+		else:
+			logging.error('The buddy %s is not present.' % (nick))
+			return
 		
-	def open_chat(self, serialized_service):
-		service = Service.deserialize(serialized_service)
-		self._chat = ChatActivity(service)
-		self._chat.connect_to_shell()
+	def open_chat(self, service):
+		chat = ChatActivity(service)
+		self._chats[service.get_name()] = chat
+		gobject.idle_add(self._connect_chat, chat)
+		return chat
+
+	def _connect_chat(self, chat):
+		chat.connect_to_shell()
+		return False
 
 log_writer = LogWriter("Chat")
 log_writer.start()
diff --git a/shell/PresenceWindow.py b/shell/PresenceWindow.py
index 6b529e66..63cc57ca 100644
--- a/shell/PresenceWindow.py
+++ b/shell/PresenceWindow.py
@@ -2,8 +2,10 @@ import pygtk
 pygtk.require('2.0')
 import gtk
 import gobject
+import dbus
 
 from sugar.presence.PresenceService import PresenceService
+from sugar.presence.Service import Service
 from sugar.chat.BuddyChat import BuddyChat
 
 class PresenceWindow(gtk.Window):
@@ -23,6 +25,8 @@ class PresenceWindow(gtk.Window):
 		self._pservice.connect("buddy-disappeared", self._on_buddy_disappeared_cb)
 		self._pservice.start()
 		
+		self._pservice.track_service_type(BuddyChat.SERVICE_TYPE)
+		
 		self._setup_ui()
 
 	def _is_buddy_visible(self, buddy):
diff --git a/sugar/chat/BuddyChat.py b/sugar/chat/BuddyChat.py
index 6d4633e5..35b440d1 100644
--- a/sugar/chat/BuddyChat.py
+++ b/sugar/chat/BuddyChat.py
@@ -1,15 +1,14 @@
-from sugar.activity.Activity import Activity
+from sugar.chat.Chat import Chat
+from sugar.p2p.Stream import Stream
 
-class BuddyChat(Activity):
+class BuddyChat(Chat):
 	SERVICE_TYPE = "_olpc_buddy_chat._tcp"
 
 	def __init__(self, service):
 		Chat.__init__(self)
 
-		self._stream = Stream.new_from_service(service)
-		self._stream.set_data_listener(self._recv_message)
-		self._stream_writer = self._group_stream.new_writer()
+		self._stream = Stream.new_from_service(service, False)
+		self._stream_writer = self._stream.new_writer(service)
 
-	def recv_message(self, address, msg):
-		print msg
-#		Chat.recv_message(self, self._buddy, msg)
+	def _recv_message_cb(self, address, msg):
+		self.recv_message(msg)
diff --git a/sugar/chat/Chat.py b/sugar/chat/Chat.py
index ec51f2f3..325fa7f6 100644
--- a/sugar/chat/Chat.py
+++ b/sugar/chat/Chat.py
@@ -28,6 +28,9 @@ class Chat(gtk.VBox):
 	def __init__(self):
 		gtk.VBox.__init__(self, False, 6)
 
+		self._pservice = PresenceService.get_instance()
+		self._pservice.start()
+
 		self._stream_writer = None
 		self.set_border_width(12)
 
@@ -193,13 +196,16 @@ class Chat(gtk.VBox):
 			return msg[desc_start:svg_last + len(tag_svg_end)]
 		return None
 
-	def recv_message(self, buddy, msg):
+	def recv_message(self, message):
 		"""Insert a remote chat message into the chat buffer."""
+		[nick, msg] = Chat.deserialize_message(message)
+		buddy = self._pservice.get_buddy_by_nick_name(nick)
 		if not buddy:
+			logging.error('The buddy %s is not present.' % (nick))
 			return
 
 		# FIXME a better way to compare buddies?			
-		owner = PresenceService.get_instance().get_owner()
+		owner = self._pservice.get_owner()
 		if buddy.get_nick_name() == owner.get_nick_name():
 			return
 
@@ -236,5 +242,7 @@ class Chat(gtk.VBox):
 		owner = PresenceService.get_instance().get_owner()
 		return owner.get_nick_name() + '||' + message
 		
-	def deserialize_message(self, message):
+	def deserialize_message(message):
 		return message.split('||', 1)
+
+	deserialize_message = staticmethod(deserialize_message)
diff --git a/sugar/chat/GroupChat.py b/sugar/chat/GroupChat.py
index a269552b..a2a33520 100644
--- a/sugar/chat/GroupChat.py
+++ b/sugar/chat/GroupChat.py
@@ -8,8 +8,6 @@ import sugar.env
 class GroupChat(Chat):
 	def __init__(self):
 		Chat.__init__(self)
-		self._pservice = PresenceService.get_instance()
-		self._pservice.start()
 		self._group_stream = None
 
 	def _setup_stream(self, service):
@@ -18,10 +16,4 @@ class GroupChat(Chat):
 		self._stream_writer = self._group_stream.new_writer()
 
 	def _group_recv_message(self, address, msg):
-		pservice = PresenceService.get_instance()
-		[nick, msg] = self.deserialize_message(msg)
-		buddy = pservice.get_buddy_by_nick_name(nick)
-		if buddy:
-			self.recv_message(buddy, msg)
-		else:
-			logging.error('The buddy %s is not present.' % (nick))
+		self.recv_message(msg)
diff --git a/sugar/presence/Buddy.py b/sugar/presence/Buddy.py
index 6bbd7879..c4dd0a53 100644
--- a/sugar/presence/Buddy.py
+++ b/sugar/presence/Buddy.py
@@ -142,8 +142,8 @@ class Buddy(gobject.GObject):
 			for service in self._services.values():
 				if service.get_type() == stype and service.get_activity_id() == actid:
 					return service
-		if self._services.has_key(short_stype):
-			return self._services[short_stype]
+		if self._services.has_key(stype):
+			return self._services[stype]
 		return None
 
 	def is_valid(self):
diff --git a/sugar/presence/Service.py b/sugar/presence/Service.py
index 56246bb0..c82d0191 100644
--- a/sugar/presence/Service.py
+++ b/sugar/presence/Service.py
@@ -69,9 +69,6 @@ def deserialize(sdict):
 		stype = sdict['stype']
 		if type(stype) == type(u""):
 			stype = stype.encode()
-		activity_id = sdict['activity_id']
-		if type(activity_id) == type(u""):
-			activity_id = activity_id.encode()
 		domain = sdict['domain']
 		if type(domain) == type(u""):
 			domain = domain.encode()
@@ -87,7 +84,18 @@ def deserialize(sdict):
 			address = address.encode()
 	except KeyError:
 		pass
-	name = compose_service_name(name, activity_id)
+	
+	activity_id = None
+	try:
+		activity_id = sdict['activity_id']
+		if type(activity_id) == type(u""):
+			activity_id = activity_id.encode()
+	except KeyError:
+		pass
+
+	if activity_id is not None:
+		name = compose_service_name(name, activity_id)
+
 	return Service(name, stype, domain, address=address,
 		port=port, properties=properties)
 
@@ -152,7 +160,8 @@ class Service(object):
 		else:
 			sdict['name'] = dbus.Variant(self._name)
 		sdict['stype'] = dbus.Variant(self._stype)
-		sdict['activity_id'] = dbus.Variant(self._activity_id)
+		if self._activity_id:
+			sdict['activity_id'] = dbus.Variant(self._activity_id)
 		sdict['domain'] = dbus.Variant(self._domain)
 		if self._address:
 			sdict['address'] = dbus.Variant(self._address)