Alright, here is a real fix. This will make sure chat actually displays nick names if the user has one, or their regular name if they don't. Here...
Any chance that the devs will change this line in EssentialsChat/src/com/earth2me/essentials/chat/EssentialsChatWorker.java from:...
I have the same problem
This was a plesant surprise when I updated to the latest craftbukkit build. You guys are awesome. Thanks a bunch.
Separate names with a comma.