The culture/community of your product is as important as the tech. Myspace held out for a very long time because, for a while, their product was focused on a different set of users than Facebook. Convore -- right now -- attracts a lot of programmers, designers, startup junkies and other tech folks. There is plenty of room and the market is far from decided: 14 y/o girls (not kidding), moms, music fans, sports followers or whoever else.

There are also a lot of really good ideas that you can apply this technology toward. To me, the most uninspired way to attack this space is to try to make your site a one-stop portal for chat. There are a lot more possibilities if you can bring the chat to other destinations, or allow people to integrate chats with their sites.

You should be aware that being in the startup universe tends to make your worldview myopic. You're hyperfocused on the hundreds of users Convore might have and right now that looks like they are miles ahead. Zoom out for a minute and realize that there are millions of users to be won before this game is decided. You are both still at the very very early part of the curve.