The above solutions do work, as it also says in the FAQ. I'll have to check though whether either my default UI settings are wrong or the default frame settings of the chat window have changed. Or if you all are just not following the installation instructions.
I had made the change to chat window behaviour around v3.2 to fix the trouble people had with the game no longer asking for default UI settings on new chars (which it now does again). So basically it was supposed to avoid the need to toggle any settings (except once for existing users).
UPDATE: I checked the window and the default settings, both work fine. Follow the installation instructions.
