> Back in mid-##80s## before anyone I knew had an Internet connection, a few of us had modems and would use them to call bulletin board systems via the phone line.
Internet connections were common place in the middle 90's, though perhaps not broadband, permanently connected ones. There was a lot of dial-up.
> The chat wasn't quite like chats are now. It was split-screen, and there were only two participants.
Sysop-only chat is squarely 1980's. I already used multi-participant chat dial-up bulletin boards as far back as 1988. Didn't even have to call long-distance; there was one in Vancouver. By the mid 1990's, that stuff was passé.
In the mid 1990's, you could PPP/SLIP to connect to the Internet over dial-up, and use IRC to chat with people all over the world (either run your own local client, or telnet/ssh into a provider's shell account). I compiled an IRC client for the first time in 1994 and was just amazed: I'm talking with people all over the flippin' world! This guy is in the Netherlands! Another one in Australia... wow! Vast number of channels and users, whoa.
In 1995, I was running Linux 1.3.x, with SMP support: an ASUS motherboard with two 100 MHz Pentiums. I had a 28.8 kbps modem, and had dial-up Internet access (PPP).