Copy the elgg/views/default/page/elements/head.php file in to mod/yourtheme/views/default/page/elements/head.php and then paste the script. Or you can take a look at this plugin and see how head is extended.

Similarly you need to either override foot view or extend it.

I tried your suggestion, however no luck. 

post the arrowchat code that needs to go into head and foot.. maybe i'll have a closer look;o

http://www.arrowchat.com/documentation/?p=header-footer-code

Theres the arrowchat support page that displays the codes needed.

how to Editing Elgg with Dreamweaver cs5/6 [Design Mode]

thats just the js includes; not real arrowchat to code and test with ;o) their website says they have elgg intergration code - so if you've bought their software - you should also have their integration code - they say it only takes 5 miutes ;;P

Ohh this all show ELGG lacks a perfect chat plugin. many of the people leave elgg for chat plugins.

@Abhijit Maske, You can't. I use DW CS5 and the best way I found to edit and see your design taking shape is to use XAMPP on your local computer. then use all available browsers to see the change in your design, making sure your design is cross browser capable before you publish it to your server.

DW is a bad wysiwyg and should never be relyed on to render before your work is published on any design you make unless it is straight html. Problem is, it can not see the dynamic output nor can it make the css views for all browsers like IE6-8, Chrome, Safari, etc

My issue is that, yes I have installed arrowchat correctly and all of what they ask for, however the location of the script codes that they ask to place in the header/footer sections lack their place of being. So if anyone can find out where exactly we can place those snippets then everything would work perfectly.

Team webgalli already answered your question

Copy the elgg/views/default/page/elements/head.php file in to mod/yourtheme/views/default/page/elements/head.php and then paste the script. Or you can take a look at this plugin and see how head is extended.

You said it didn't work and dismissed it.  Are you sure you did it correctly - or did the rest of the installation correctly (never used arrowchat so I don't know what's involved) because that is in fact the correct answer.