Cryptocat is an open source and web-based chat application that focuses on making sure that the communication is encrypted and private.
It is built with PHP and works with a single file besides the static files (CSS, JS and images) used.
The interface is simple-yet-nice and messages are encrypted with AES-256 using crypto.js library.
For a private group communication inside a chat room with other users, a passkey (used by all of the group) comes to the rescue.
Also, for paranoid users, there is Cryptocat Verifier, a Chrome extension which verifies that your Cryptocat session is not serving you modified JavaScript code.
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