Hmm, ok so after some error checking and dabbling I found that the first error I encountered was because of an IIS worker process. I put PureChat on a dedicated application pool and the issue is gone
I moved my "online/offline" images to the wwwroot folder, and that solved my image issue
Unfortunately my next issue is purely cosmetic.
My "online/offline" image is not updating when i click the away button or close the operator console. So my issue is that it says that i am ALWAYS ONLINE.
This is not good
Chase