With the release of Linden Lab's Viewer 2, an issue has cropped up for users of SLiteChat. Presently, SLiteChat does not attempt to rez your avatar in-world. With pre-2.0 viewers, this was never an issue (the AV just appears as a ghosty-blob). However, Viewer 2.0 handles in-world rendering a little differently than pre-viewer 2 and other viewers like Snowglobe and Emerald. This results in a fully dressed AV that has the default "Ruth" body (i.e. if you have a male avatar, it will appear as female, hovering in the air, to users of Viewer 2 who try to look at you).
Sadly, there is no work around at the present time. However, I wanted you to know that we are working on a fix for this. One of SLiteChat's goals has been to rez avatars correctly in-world, so this is something that is on-going.
Thanks for using SLiteChat!