Various buffers in chat can be overflowed. However, there is no obvious way to compromise security using these bugs. Under certain special circumstances an outside attacker could supply an argument to a free() library call. To reproduce one instance of the bug, type "chat REPORT x ABORT y z" and supply a line of more than 100 x's as input. I'm working on a patch myself.
assigned to johnsonm
appears to be fixed in ppp-2.3.9