Most current version

gistfile1.txt

Server:

var app = require('express')(), 
    server = require('http').createServer(app), 
    io = require('socket.io').listen(server);

server.listen(8088);

//routing
app.get('/', function (req, res) {
  res.sendfile(__dirname + '/index.html');
});

io.sockets.on('connection', function (socket) {

  socket.on('set nickname', function (name) {
    socket.set('nickname', name, function () { socket.emit('ready'); });
  });

  socket.on('msg', function () {

    socket.get('nickname', function (err, name) {
      console.log('Chat message by ', name);
    });

  });

  socket.on('disconnect', function () {
    io.sockets.emit('user disconnected');
    console.log("disconnected");
  });

});

Client:

<script src="/socket.io/socket.io.js"></script>
<script>
  var socket = io.connect();//without a URI it goes to auto-detect

  
  socket.on('connect', function () {
    socket.emit('set nickname', prompt('What is your nickname?'));
    
    socket.on('ready', function () {
      console.log('Connected !');
      socket.emit('msg', prompt('What is your message?'));
    });

  });
</script>

Actually there is others problems. You attach the socket.io server to the http server, change that and attach it to app

nevermind, express 3 does exactly the opposite of what I'm saying this code should be fine