Grr, I hate these error messages as it doesn't specifically highlight what function call is definitely causing the internal function to go belly up.
That said. The only Update function in the nUI ChatFrame file only has a couple of numerical calculations but I can't see why they would ever be nil to cause this error.
I've not come across this myself recently and I did a fresh addon install clearing out WTF, WDB, Cache and Interface folders and whilst I get a repeatable error which has been seemingly fixed with one of Scotts quick fixes for it that I've been testing I've never seen your one itself.
I'll keep a look out though and hopefully someone else comes across the problem and we can find a similar situation to tie the problem up.
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