I have been reading around some palace sites and found this. Most Palace seems pretty dead right now but here something new. Some is working on a Flash version of Palace. Hope this help with the current palace community. Here what their web site says. This could be a good replacement in the future instant palace. Open source is good too 🙂 The website is http://openpalace.org
OpenPalace is a free, open source client application for The Palace, a 2d graphical avatar chat platform. It is available as a desktop application built on the Adobe Air platform, and also as a browser-based version, meant to replace the aging InstantPalace client. The project is still under heavy development, and I have only my spare time to work with, so your patience while I prepare the first public release is appreciated. Until then, you’re welcome to try out the web-based version. Because of security restrictions in the flash player, it will only connect to my test palace at openpalace.org:9998.