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There's no option to put the chat edit box at the bottom... the problem is the chat edit box *overlays* the chat frame, not sits above or below it. If you put the chat box at the bottom *and* you overlay the chat frame, then the chat edit box is on top of the last line in the chat frame and you can't click links and such. Putting the chat edit box at the top of the frame means it is always covering the oldest text in the chat and it never is in the way of new text.
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