You answered your own question in the first post. There is already a plugin for it, so it's easily doable. Just needs to be updated for 1.8 compatibility.
Right, but how do I go about upgrading it? Are there any howto's that show exact differences between 1.7 and 1.8 version, and what needs to be changed?
http://docs.elgg.org/wiki/Updating_plugins_for_Elgg_1.8 that tells you how to upgrade for 1.8 :).
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