Because Colloquy requires HTML text, it has problems displaying some normal text characters in the window (eg &) and it just sends a blank line. The text must be "converted" to HTML OK text - where e.g. & is changed to & There are a lot of other odd characters that may need to be changed because, if they are present, they will probably similarly screw up the display of the whole line.
It would be nice if there was a built in Applescript routine that can be called to translate lines of text to and from HTML. All the HTML characters would be translated - http://rabbit.eng.miami.edu/info/htmlchars.html
Maybe a more powerful version would also have the option of converting other IRC characters (eg. ctrl-b) into HTML compatible text (<b></b>)
Such a basic funtion would 1. be so useful, 2. be reliable in converting ALL troublesome characters (vs a user created routine), and 3. protect against bugs/errors in display, that I set this ticket to a high priority.
Cheers
Niteshade