I was browsing the Pal fun message boards and this is what I found in the Currently Reported Bugs in Pal fun section:
+ Profile Bug: If you cannot change your profile, simply use regular AIM to change it, while we are waiting for a new release of Palfun. But you need to make sure that your AIM and Palfun are unintegrated, meaning that when you click on the AIM icon, it opens AIM, not Palfun. If you are integrated and wish to unintegrate, simply reinstall Palfun and uncheck the box that says "Full integration with AIM" at the end of the installation. Someone else on these forums has said that reinstalling Palfun and the latest AIM (5.9.3702) has solved the problem. Perhaps you can try to do this as well. If that does not work, then please see this thread to get it working.
+ Won't Log Conversations: We've recently been getting this bug report about conversations not being logged. There are some theories that it may have something to do with the length of the conversation or how long you keep the box open. However, this bug seems to be rather random, as for some people it will not log any conversations not matter how long or short and for others, it comes and goes. No current solution.
+ Palfun Closes After Long Time: If you leave your AIM open for several hours of inactivity (ex. 8 hours), it has been reported that Palfun will have an error and close. There is currently no solution for this. Just don't leave AIM open too long, I suppose.
+ Windows Never Blink or Blink Too Much: Yes it has been reported that either the IM window does not blink when receiving a new IM or it blinks even when there is no new IM. I suggest that if you are using a skin, turn it off (or use "No Skin"). This should solve your problem. However, if it does not, then there is nothing we can suggest.
+ IM Windows Lose Focus While Typing: There is currently a bug that causes the IM window to lose focus while you are typing, so that it might make you accidentally warn someone or change tabs if you are using tabbed windows, much like what would happen if you pressed "Tab". The source of the problem is the profile updater. To temporarily solve the issue, go to Palfun preferences and make sure that the auto-updater for your profile is off.
+ Buffer Overrun Detected: If you have 5.9.3702 (the latest AIM version) and you are getting this problem, simply downgrade to 5.9.3690 because Palfun has not released a new version after 5.9.3702 was released. You can download 5.9.3690 here. However, you can try reinstalling Palfun and AIM 5.9.3702, as it has been reported that this has solved the issue.
+ Palfun Doesn't Work and I'm Running Windows ME or 98: Palfun seems to have compatibility problems with Windows ME and Windows 98. There is currently no solution for users of these computer platforms. Sorry.
+ Problems w/Linked SNs: If you are having problems using Palfun with linked SNs (such as linking, unlinking, or simply managing them), chances are it is not a Palfun issue but an AIM issue, according to Roy, the Palfun admin here. Therefore, there is no solution given except using cloning.
+ Memory Leak or Lots of CPU Usage etc: If you have noticed that Palfun is taking up a lot of your computer resources or begins to really lag the longer Palfun is open, this is probably due to the memory leak in Palfun. The issue was addressed when 6.6.4 was out, but it was never resolved. No current solution.