We will investigate this and try recreate it internally. As a work around run the desktop version of Palringo, sign in to your account and add the GTalk account from there. Then we will know if its just an issue with the device.
Pretty much every thing I've tried on this app hasn't worked. You'd think they'd fix at least the majority of the issues before release. Please fix these problems fast. Then this app would be awesome.
I downloaded Parlingo on Sunday 8th November. Apart from the Facebook which didn't work until Tuesday 10th November; this app has been great.
Facebook, MSN & Gtalk all work great now on both iPhone and Desktop (Windows7!)
GTalk does show up as XMPP/Jabber - but that's because Google use the XMPP protocol; so it's not really a bug!
I have the same problem, when i log in to google talk, i do get in but as xmpp/jabber user, i know there is a problem of recognition of the service, could you work on it, at least i can connect, greets