The chat is similar to Facebook chat - you get a chat window on the bottom right corner of your website when you are logged in as a member in your website. The chat window consists of members you have added as friends. Then you click on the friend's username to pop-up a chat window to chat...
Did you get the chat displayed in the bottom right corner of your website when logged in as a member (not admin)? I checked it with the tester 1 account after activating it and it worked (then I re-inactivated the account). Please let me know what part you are having issues with, because it was working great when I tested it.
Regarding "privacy settings, friend request, inbox" - what specifically isn't working?
You have the login boxes at the top of your website right now, so after a member logs in, their inbox link will be there too, as you have your inbox created/activated from the templates generator.
You can create privacy settings for profile fields from your admin panel on Configure Site > Social Networking page - in the Registration section and Privacy Settings section.
You should have the Privacy Settings created/activated for members to update from their edit profile page, from the social templates generator. After logging in, members can click on their username (which displays where you have the login boxes) to go to their edit profile page, and then click on the "Privacy Settings" page to manage it.
Friend requests can be made from the public profile page of members, as you have the friends app activated through the social templates generator. Members can go to another member's public profile by clicking on their username on their posts, comments, etc.
Hope this helps!
Please feel free to message if you have any further questions.