A friend of mine gave me the link to download the ParagonChat client and it is the same one that they use to sign in ,with no issue.. so there is clearly something i'm doing wrong or missing..
Codewalker did post direct links to fetch the Paragon Chat client directly. Other people have been using one of the two software downloaders (Tequila for Windows, Island Rum for Mac) which will periodically update the software to the latest version. Otherwise, you will have to manually download Paragon Chat every time its patched to a new release, and we're in the rapid beta part of deployment where Codewalker is compiling new versions every time he corrects a typo. I would recommend downloading one or the other (Tequila in your case if you are using Windows) just for that fact alone. There are links to Tequila in my Quickstart guide linked in my signature for this post.
In the meantime, we can try adding the command line switch manually. Do you know how to make a windows shortcut? If so, make a shortcut to Paragon Chat, and in the properties for the shortcut find the Target line, and add "-localhost" to the end of that line. Then use the shortcut to launch Paragon Chat. That *may* fix the problem.
If you do not know how to make a Windows shortcut, use Windows Explorer to browse to the folder that Paragon Chat is installed in, right click on Paragon Chat, and select "Create Shortcut". You should see something like "Paragon Chat - shortcut" created in that folder. Right click on that, select properties, and then follow the directions above to add the -localhost argument at the end.
If you decide to download Tequila, there's a way to do this in a simpler fashion that I described earlier, that doesn't involve having to know much about Windows or command line switches or shortcuts. Just download Tequila into the exact same directory as Paragon Chat, run Tequila, add the -localhost switch, and then launch Paragon Chat.
If it still doesn't work, post any additional results of your testing. If you are not knowledgeable enough with Windows to do any of the steps I've outlined, PM me and I will try to help with that.