Fring [link], is yet another Instant Messenger client for the iPhone/iPod touch. The biggest thing about fring is that it includes Skype support, something that MobileChat, Palringo, IM+ and Beejive don't have.
But that is the only good thing about fring, It still has a long way to go if it wants to be the top free IM app in the App Store. Fring currently doesn't allow you to to change your status, so as long as you are logged in, you are avaliable. Also, it will show contacts as online when they aren't. The latest update was said to fix this, but so far, this is not true.
I would reccomend you go with Palringo for now, if you want a good IM client for the iPhone
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