Not so long ago I remember seeing a project using a zelda engine to run a chat would type thing, does this still exist and if so could I be directed to where it can be found.
Zelda Worlds / Zelda Online
i beleive you are talking about Graal...
Zelda Online turned into Graal a while back.
But what you're talking about was Zelda Worlds. It never got very far, but I think I might have a copy lying around on my machine. Might. GD was planning on making it and Open Zelda with the same engine. OZ got changed around a lot with it's newer script, and neither got very far. The latter is open source now, I think. Not 100% sure though.