Well, it did work last night and I got to talk to Rusty while I was playing EQ!! What I had to do was add EQ to my list of installed games:
If it does not show you playing the game then Xfire likely has no idea that you have the game so it will not record your play time. Click on the Tools menu, open the Launch list, and view your games installed. If you cannot find the game on the list go to the Tools menu, select Find Installed software, and wait for Xfire to find the game on your hard drive. Once Xfire finds the game, highlight the game in the upper portion of the window, now select the path in the lower portion, and click Apply. The game will now be detected and your play time will be tracked.
However, it does show that Bal is playing WoW when he plays WoW, so doubt this will solve your problem. When I was in game, all I did was hit scroll lock + x and it brought up the window thingy and I was able to send a message to Rusty. It's pretty neat and it works very well when playing a game. You don't use your mouse to click on any part of it, just use keys and hit Esc to close the window from your screen. It just pops up again when someone sends you a message or you just hit scroll lock + x to bring it up again. Yay for new toys.