examples/chat-server.py: Cannot connect

[nadimkobeissi]

I get the following Pidgin error when I attempt to connect to chat-server.py using Pidgin:
SASL error: SASL(-1): generic failure: Server doesn't support "no layer"

This is using "Require encryption" as the setting for "Connection security." Setting "Connection security" to anything else makes the connection fail completely with no error other than "Unable to connect."

Please help!

[nadimkobeissi]

Update: This issue does not happen on Adium, Adium connects perfectly! :)