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When you have an HTML entity in a chat message, the normal Chat Window will interpret it normally (if "normally" may mean: it is parsed as an entity). I.e.,   becomes a non-breaking space character.

However, when you click the permalink, the entity is shown as-is, i.e., in the source you can see that the & is escaped as &.

I don't know which is better (escaped or not), but in all other screens of StackOverflow, Meta, Comments etc, most entities are allowed and interpreted. So I'd assume that it should be interpreted in the permalink as well. Here's an example (see the   in the middle of the post)

Edit: the same is true for "latest chats" under "other rooms you're in" or starred messages:

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up vote 2 down vote accepted

Actually no, HTML entities were never supposed to be parsed as an entity. The fact that this happened in certain cases actually was a bug -- which you have exploited mercilessly with your "I want more space between my messages" :-)

This is now fixed.

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Haha, indeed. Sorry to have been so merciless ;). Pity, because I kind of like it when I can use entities, saves me a whole lot of going back and forth from other programs to insert some special characters. – Abel Aug 22 '10 at 18:50
I.e., I tend to love to insert — on places where you use -- above. This used to work and I used it a lot. :S... (luckily it still works in questions and answers, hope that never gets removed) – Abel Aug 22 '10 at 18:51
@Abel I know what you mean, I'm pretty anal myself when it comes to using the correct dashes in "real" texts. On posts like this sometimes I do, sometimes I don't. But in chat -- meh. That's just talking. :) – balpha Aug 22 '10 at 19:01
you're right, that's a view I'll take to heart! – Abel Aug 22 '10 at 21:26

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