Messages sent from your client to the server appear in red text, while messages received from the server are in blue.
Note that the chat console does not automatically scroll so long as you have the window opened. This is actually more useful for debugging purposes than having the window keep scrolling to the bottom constantly. However, when you first open the window, it will automatically jump to the bottom.
To make the window disappear, click the "Dismiss" button. The "X" button on the title bar won't close the window.