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Chat bots are a lot of fun. Google App Engine handles incoming instant messages just like other web requests, so developing a chat bot for App Engine is quite similar to developing any other webapp.

For more info on App Engine's XMPP integration:

http://code.google.com/appengine/docs/python/xmpp/overview.h...

And my shameless self-plug:

http://social-butterfly.appspot.com/

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On a side note, if you are looking to develop a bot using a standard HTTP service hosted anywhere using any language (not just Python and Java) with a better domain name (@bot.im as compared to @appspot.com), you could try http://www.imified.com/

The good thing about appengine though is that everything is so well integrated that you don't really have to look to piecing together the parts.

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