I have checked all of the options, and there's nothing listed that even refers to direct connections. I have the chat enabled. If I you have the time, would you be so kind as to search for a jpeg called "SUPERSTAR VIRGO" and select "chat with host" to see if that works? (I have just put a 93.6kb picture in my shared folder) As for the direct connection problem, the tab on the left hand side that is called "direct connect" tells me that I cannot because I am behind a firewall. I do not know anyone's address to test this though.
Cheers.