Creating a simple site chat solution using shoutbox

Here is a simple way to leverage the power of rules, views bulk operations, private message, private message growl and shoutbox to create a simple chat solution for your site. Site runs on shared server with limited resources and php 5.2
Please note that after one month of using this solution I found envolve chat module which is what I am using on my site now as it reduces the burden on the system.
My Requirements:

  1. One single public chat on the site which auto updates
  2. Notifications to active logged in users on the site only
  3. Per user ability to opt out from the notifications messages

Step 1: Module Requirements (D7 versions):

  1. Private message
  3. Views Bulk Operations
  4. Private Message growl
  5. Shoutbox
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