OK so I've been reading/researching and I'm still trying to wrap my head 
around how the above code works,

First let me define what I *think* is going on,

The script imports socket.io modules needed and the imports web2py's 
wsgibase...

SocketIOServer (('0.0.0.0', 8080), wsgibase,
   resource="socket.io").serve_forever()


This passes the SocketIOServer on localhost port 8080 to wsgibase, Im still 
not clear on what resource="socket.io" does... in the source of 
socketioserver it seems to be the default setting anyways not sure if its 
important or not... finally serve_forever() starts the server loop...


This leaves me with a few questions... 
1) So whats actually serving the webpage here!? Is socketIOserver the http 
server? or the WSGI server? Both?
2)This seams to break some of web2py's functionality for example the admin 
page will complain that there was not a password set, changing the code to 
start the server on port 8000 seemed to fix it...
3)Overall I guess I'm just new to the whole architecture flow and unsure of 
what does what, Im slowly breaking it down by reading source code, If 
anyone knows of any specific docs that i should check out please point me 
to it :) 
4)Having the chat example running on my local machine is awesome however 
I'm still unsure of how I would deploy it...

-- 
Resources:
- http://web2py.com
- http://web2py.com/book (Documentation)
- http://github.com/web2py/web2py (Source code)
- https://code.google.com/p/web2py/issues/list (Report Issues)
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