Yes, Palringo is free and supports both Jabber and Windows Live Messenger (plus a few other standards). I used it for the first time last night - and found the keyboard speed to be extremely lacking. It's extremely slow and entering/correcting my inputs made me so angry that I almost threw the phone against the wall.

Anyway, I hope they fix this soon.

What I also use:

- SplashID for storing my passwords
- Netshare (tethering - not available any more :-(
- Tuner (for listening to internet radio on the go or via WiFi at home)
- Ambiance (I have Tinnitus - makes me fall asleep more easily)
- Truphone (WiFi calls - expensive rates but cheaper than calling from abroad)
- FileMagnet (for copying over files to the iPhone)
- eReader (excellent eBook reader, supports ereader.com, fictionwise.com and your own uploads)
- 20min (for getting my daily dose of Switzerland's boulevard / crap newspaper)
- AccuFuel
- ShoppingList
- Units
- EasyTask
- Currency
- ToDo
- PassGen (generates passwords)
- AIM
- Palringo (AIM's MUCH better but only supports AOL)
- LocalPicks (yes, Swiss locations are supported)
- Shazam (just a toy)

Games I like and play:

- Sextuple Word Challenge
- CrossLight
- Lander
- DoubleDrop
- Imangi