Hi --
It appears by the error posted that you are trying to upload the "SwirlChatroom (1.8.0).zip" file. This file is NOT ACTUALLY the PA (Private Assembly that you upload). Instead the PA (Private Assembly), is located INSIDE the downloaded zip file. The downloaded zip file contains much more information than just the PA. For one thing, there are some steps that you need to do on your DNN installation to enable the AJAX.NET engine (no matter what version of DNN you are running).
For more information, please see the Installation Instructions inside the zip file, or review the installation instructions on our website: http://www.swirlhost.com/chatroom/Documentation/Installation/tabid/69/Default.aspx
If you continue to have any problems getting the module installed, please open a ticket with our helpdesk by sending an email to: support@swirlhost.com
Thanks, and Happy Chatting!
-- Will Gillen
-- Swirlhost Support